Key facts
- UK grocery price inflation fell to 2.1% in the four weeks to August 9.
- This is the lowest rate recorded since October 2024.
- Grocery sales increased by 2.5% year-on-year during the same period.
- Tesco, the market leader, saw a 1.8% sales increase over 12 weeks, with a slight market share decrease.
- Sainsbury's reported a 3.5% sales increase over 12 weeks.
Grocery price inflation in the UK has eased to its lowest point since October 2024, with like-for-like inflation at 2.1% in the four weeks leading up to August 9, according to market researcher Worldpanel by Numerator. This offers further relief to households struggling with the cost of living.
The easing inflation is attributed to intense competition among supermarkets, consumer resistance to price hikes, and better hedging by suppliers. Official inflation data for July is expected on Wednesday.
Overall grocery sales increased by 2.5% year-on-year during the four-week period. Shoppers increasingly turned to promotions, with 31.3% of sales including a deal. Sales of sun cream surged by 58.4% and ice cream by 26.1% due to hot weather.
In terms of market share over the 12 weeks to August 9, Tesco's sales grew 1.8% but its share slightly declined. Sainsbury's saw a 3.5% sales increase. Marks & Spencer was the fastest-growing food retailer with a 15.9% sales rise, followed by Ocado with 13.1% growth and Lidl with 8.5%. Asda's sales fell by 0.2%, marking its best performance since March 2024.