UK grocery inflation has dropped to its lowest level since December 2024 according to new research, although the average household is still spending £156 more on groceries each year.
Like-for-like grocery prices increased 2.6 per cent in the four weeks to 12 July, according to the latest figures from Worldpanel by Numerator, easing from three per cent in June.
The slowdown offers some relief to consumers after months of cost-of-living pressure, but the researcher warned that cumulative price rises were continuing to push up household bills.
The average household spent £5,530 on groceries during the 12 months to July, representing an increase of £156 against the previous year.
Worldpanel head of retail and consumer insight Fraser McKevitt said: “Even as the rate of inflation cools, the cumulative cost of the weekly shop keeps climbing.”
Take-home grocery sales rose 3.3 per cent year on year during the four-week period as hot weather and the FIFA World Cup encouraged spending on food and drink.
The increase marked an acceleration from the 2.4 per cent sales growth recorded in June, when warm weather also boosted demand for summer products.
Competition among the UK’s biggest supermarkets remained intense during the 12 weeks to 12 July.
Tesco’s sales increased 1.7 per cent, although the market leader’s share edged down for the second consecutive reporting period. Sainsbury’s recorded a stronger 2.8 per cent uplift.
Lidl remained Britain’s fastest-growing bricks-and-mortar grocer as sales surged 8.6 per cent, continuing the discounter’s recent run of market share gains.
Ocado retained its position as the fastest-growing grocer overall, with sales jumping 14.1 per cent during the period.
Asda continued to move in the opposite direction, with sales falling 1.1 per cent. However, the decline was smaller than that recorded in Worldpanel’s previous update, indicating an improvement in its trading trajectory.
The latest Worldpanel figures provide an early indication of food price pressures ahead of the publication of official UK inflation data.
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