- Rainfall threatens farm output
- Labour cost and business rate headwinds
Shoppers are buying more as food price inflation slows, potentially boosting supermarket margins even as their costs rise this year. The easing of supplier price increases means supermarkets are under less political pressure to quickly cut shelf prices, further helping earnings.
In the UK, grocery price inflation was 4.5 per cent in the four weeks to 17 March, according to research firm Kantar. This is the lowest rate since February 2022, and compares with the most recent peak of 17 per cent seen last March.