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UK grocery inflation eases further, says Worldpanel

UK grocery inflation eases further, says Worldpanel

Grocery inflation 2.1% in 4 weeks to August 9, says Worldpanel

UK grocery sales up 2.5%

Industry leader Tesco's share down for third straight report

M&S is UK's fastest growing food retailer

Asda sales still falling

By James Davey

- British grocery price inflation eased to its lowest level since October 2024 in August, market researcher Worldpanel by Numerator said on Tuesday, offering more respite to households grappling with elevated living costs.

Like-for-like grocery inflation was 2.1% in the four weeks to August 9, according to Worldpanel, versus 2.6% in last month's report and 3.0% in the one before that.

The Worldpanel data is the most up-to-date snapshot of UK consumer behaviour and provides an early indication of food pricing pressures in August.

Official inflation data for July will be published on Wednesday.

UK food inflation has not hit the levels that were forecast earlier in the year, due to fierce supermarket competition, consumers' resistance to further price rises and better hedging by suppliers.

Britain's new Prime Minister Andy Burnham has made tackling the cost of living a priority.


SHOPPERS TURNED TO PROMOTIONS

The data showed UK grocery sales increased 2.5% over the four weeks year-on-year, with 31.3% of sales including a deal.

The hot weather drove a 58.4% jump in sales of sun cream, with ice cream/sorbet sales up 26.1%.

Worldpanel said that over the 12 weeks to August 9, industry leader Tesco's TSCO.L sales rose 1.8% year-on-year, but its market share edged lower for the third report in a row. Sales at number-two player Sainsbury's rose 3.5%.

While Marks & Spencer MKS.L isn't fully included in the Worldpanel data set, it remained the UK's fastest-growing food retailer with a 15.9% rise in sales of groceries.

Online supermarket Ocado OCDO.L was the second fastest growing with a 13.1% increase, followed by discounter Lidl with growth of 8.5%.

While sales at number-three player Asda fell 0.2%, this was its best performance since March 2024.


UK supermarkets' market share and sales growth (%)


Market share 12 weeks to August 9 2026

Market share 12 weeks to August 10 2025

% change in sales year-on-year

Tesco

27.8

28.1

1.8

Sainsbury's

15.2

15.1

3.5

Asda

11.5

11.9

-0.2

Aldi

10.7

10.9

1.1

Lidl

8.8

8.3

8.5

Morrisons

8.5

8.4

3.3

Co-operative

5.5

5.4

5.1

Waitrose

4.5

4.5

2.8

Iceland

2.3

2.3

2.4

Ocado

2.1

1.9

13.1

Source: Worldpanel by Numerator


(Reporting by James Davey; editing by William James)

((james.davey@thomsonreuters.com))

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