GROCERY PRICE INFLATION has fallen to its lowest level since this time last year – but still remains high at 11.5%.

Data collected by market research firm Kantar indicates that grocery inflation of 11.5% in the 12 weeks up to 3 September is the primary driver of a rise in take-home grocery sales, which jumped by 7.9%.

Shoppers visited grocery stores more often this month than last month but purchased an average of one less item.

Tesco, Lidl, Dunnes Stores, Aldi and Supervalu all grew their intake compared to this time last year, with growth of 16.1%, 11.6%, 11.1%, 5.6% and 4% respectively.

Dunnes Stores holds the largest share of the market at 23%, slightly ahead of Tesco at 22.6%, while Supervalu saw its customers visit their stores most frequently compared to other grocers.

Kantar Business Development Director Emer Healy said the slow in grocery inflation is “welcome news for consumers”.

“This is the fourth month in a row that there has been a drop, down 1.3 percentage points compared to last month, which is encouraging for both shoppers and retailers,” she said.

“Although the rate of inflation is still relatively high, it is the lowest level we have seen in the last 12 months, and we expect it to continue to fall over the coming months.”

The return of children to schools had a noticeable impact on shopping trends, according to Healy.

“Regardless of rising costs, parents had to prepare for the end of summer and schools reopening at the start of the month,” she said.

“This is an important time for many consumers with parents stocking up and getting ready for the return of the packed lunch. As a result, shoppers spent an additional €7.4m on biscuits, €1m on breakfast cereals, €2.2m on cheese and €947k on bread.”

Online sales increased 18.5% year-on-year, with shoppers spending an additional €27 million digitally.