UK Grocery Inflation Hits Highest Level in 15 Months

The figure compared to grocery inflation of 3.8 per cent in last month’s report and reflects the cost of supermarkets’ higher payroll taxes and an increase in the national minimum wage, which came into effect in April.

Industry researcher the Institute of Grocery Distribution has forecast that food inflation could hit nearly 5 per cent this year.

Grocery sales over the four weeks, meanwhile, rose 4.4 per cent year-on-year.

“Households have been adapting their buying habits to manage budgets for some time, but we typically see changes in behaviour once inflation tips beyond the 3 per cent to 4 per cent point as people notice the impact on their wallets more,” said Fraser McKevitt, head of retail and consumer insight at Kantar.

Kantar said prices were rising fastest in chocolate confectionery, suncare and butters and spreads and were falling fastest in pet food and household paper products.

Market leader Tesco (TSCO.L) continued its strong sales run with growth of 5.9 per cent year-on-year over the 12 weeks to May 18. Number two player Sainsbury’s(SBRY.L) sales were up 4.7 per cent, Kantar’s data showed.

Number three Asda remained the industry laggard with sales down 3.2 per cent and a 90 basis points loss of market share over the year. However, its performance was its best since May last year.

Discounters Aldi and Lidl achieved their strongest combined growth since January 2024 at 8.4 per cent, while online supermarket Ocado (OCDO.L) marked a full year as Britain’s fastest growing grocer, with sales up 14.9 per cent.

Despite enduring a cyberattack, Marks & Spencer’s (MKS.L) sales rose by 12.3 per cent, Kantar said.

Source: Reuters