Online grocery prices ‘1.2% cheaper than a year ago’

Online grocery prices were 1.2% cheaper in February compared with a year earlier, the first such fall since October 2021, figures show.

Pet products were 0.5% cheaper than a year ago, according to Adobe Analytics price tracking, based on online transactions.

Online grocery prices were up 0.1% on January, although this compares to the 5.3% increase seen between January and February last year.

Across all categories, UK online retail prices were on average 8.2% lower in February 2024, compared with last February.

However, average prices were up slightly (0.6%) on January, although the post-Christmas sales are likely to have affected this, with categories such as apparel, appliances, jewellery, and home and garden supplies returning to normal levels last month.

This February’s figures were also distorted by the leap year providing an extra day of shopping, boosting total spending to £8.8 billion.

Without this additional day, online spending for the month was 1.9% higher than last February, Adobe said.

UK consumers spent £1.38 billion through buy now, pay later services in February, the figures show, representing 15.6% of total spending and a 9.5% increase on last February – or an increase of £120 million in unsecured borrowing.

Vivek Pandya, lead analyst at Adobe Digital Insights, said: “While our data shows a 5% uplift in online spending compared with last year, much of this growth can be attributed to the additional shopping day on February 29 and an increase in the use of buy now, pay later services.

“There are, however, some positive signs for shoppers, with Adobe Analytics recording the first year-over-year decrease in prices for grocery and pet products since October 2021.”