Is supermarket price war coming to an end?
Prices for the UK’s most popular grocery products have risen for the first time in over 6 months, hinting that the damaging price war in the sector may be coming to an end.
Data from grocery price comparison website, mySupermarket.co.uk, shows that an average basket of products increased slightly from £86.60 in May to £86.84 in June.
When compared to 12 months ago, however, the same basket (of 35 most commonly bought grocery products) in June 2014 was 5.5% more expensive at £91.88.
The products that increased the most were onions (up 11%), bananas (up 5%) and carrots (up 4.3%). The biggest fallers were broccoli (down 17.3%), pasta (down 5%) and mushrooms (down 3.7%).
Gilad Simhony, CEO of mySupermarket, commented: “Although there has been only a slight increase we are closely monitoring whether this marks the beginning of price increases at supermarkets, unseen during the recent period of supermarket price wars.”
Data released earlier this week by Kantar Worldpanel showed that groceries are now 1.7% cheaper compared with a year ago. Prices have been falling since September 2014, but the rate of decline is slowing and the research group predicts that they will rise again by the end of this year.
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