Relief is in sight for British shoppers as grocery price inflation finally falls to single digits for the first time in over a year. According to data from Kantar, grocery price inflation slowed to 9.7% in the four weeks leading up to 29 October, marking a significant milestone in the ongoing cost of living crisis.

While this decline is welcome news, Fraser McKevitt, the head of retail and consumer insight at Kantar, cautioned that prices are still rising, albeit slower. “We’re only seeing year-year price falls in a limited number of major categories, including butter, dried pasta, and milk,” he explained.

To alleviate the pressure on household budgets, retailers are actively implementing strategies to soften the blow of rising prices. One such strategy is the increased use of promotions, which now account for 27.2% of total grocery sales – the highest level since Christmas last year.

This shift towards promotions is evident in the growing popularity of supermarkets’ own-label products. Own-label sales have consistently outpaced branded sales since February 2022, with a notable 8% growth in the past four weeks compared to a 6.7% increase for branded products.

Despite this trend, the gap between own-label and branded goods is narrowing, suggesting that shoppers may return to branded items as the festive season approaches.

Regarding specific product categories, sparkling wine prices have experienced a welcome decline, with the average cost for a standard bottle falling by 8% from £7.46 in August to £6.86 in October. Conversely, low-alcohol beer prices have risen, but sales volumes have increased by 16% in the past month, partly attributed to the Sober-October challenge.

Among retailers, Lidl continues its reign as the fastest-growing, with sales over the 12 weeks to 29 October up by 14.7%. Aldi, with an impressive 207,000 more customers than last year, and Waitrose, the only other grocer to increase its shopper base, also saw sales growth of 13.2% and 5.4%, respectively.

Sainsbury’s emerged as the fastest-growing traditional supermarket, achieving a 10.1% sales increase over the same period.

Looking ahead, Primark, which has already implemented “selective price increases” to protect profitability, expects further growth in sales next year driven by new selling space expansion and modest like-for-like sales growth.

While the battle against inflation continues, the decline in grocery price inflation offers a glimmer of hope for British consumers, indicating that the worst may be behind us.