Belfast Telegraph

Weak pound eases price war in shops as inflation bites

By Holly Williams

Online grocer Ocado has confirmed the sector's fierce price war is beginning to ease off as the Brexit-hit pound starts to push up prices.

Chief executive Tim Steiner said that the group was seeing the "first signs of a change in market pricing" after years of food price deflation, which was sparked off by competition from German discounters Aldi and Lidl.

Ocado saw its average order size fall 1.6% to £110.84 in the 13 weeks to February 26 in what marked a far slower rate of decline than in previous quarters.

It had seen average orders drop 2.7% in the year to November 27.

Supermarket inflation doubled in February as shoppers had to pay more for butter and tea as well as fruit and vegetables, according to figures last week from Kantar Worldpanel.

Kantar said grocery inflation jumped to a near three-year high of 1.4% in the 12 weeks to February 26, from 0.7% in the 12 weeks to January 29.

Belfast Telegraph