This month’s figures show a dramatic 2.6% surge in prices between the beginning of February and the same time last month. Until now, the recently launched index had revealed steady deflation in the grocery market with prices down 1.4% for the six months to January.
Some of this month’s price increases can be explained by the end of Christmas and new year promotions on alcohol lines, and seasonality issues in fresh produce. There has also been upward movement in many key products across all fixtures, including own-label and branded goods.
The Grocer Price Index