Worldpanel figures show grocery price inflation at its highest level in 18 months

Two-thirds of households are very concerned about the cost of food

Two-thirds of households are very concerned about the cost of food

Grocery price inflation has increased again, with households expressing concern about the cost of their food shop.

Take home sales at the grocers grew by 5.4 per cent in the four weeks to 13 July compared with last year, according to the latest figures from Worldpanel by Numerator. Grocery price inflation hit its highest level since January 2024 at 5.2 per cent this month.

With the average household spending £5,283 each year at the grocers, the latest rise could add £275 to bills if people’s shopping habits stay the same.

Fraser McKevitt, head of retail and consumer insight at Worldpanel, cited research showing just under two-thirds of households say they are very concerned about the cost of their grocery shopping, and people are adapting their habits to avoid the full impact of price rises.

Own-label products, which are often cheaper, continue to be some of the big winners, with sales of these ranges again outpacing brands, growing by 5.6 per cent versus 4.9 per cent.

“These inflationary worries aren’t just changing what we buy, but how we prepare it too,” McKevitt added. “We often see people choosing to make simpler meals when they are trying to save money, and today, almost seven in 10 dinner plates include fewer than six components.”

McKevitt said innovation is vital to help grocers keep up with new trends and make sure they’re meeting shoppers’ needs as behaviours and priorities shift.

Market share update

Lidl reached a record high market share this period at 8.3 per cent, gaining 0.5 percentage points as it attracted more than half a million new customers to its stores.

Tesco also boosted its share to 28.3 per cent as sales grew by 7.1 per cent – the fastest rate since December 2023. Sales at Sainsbury’s increased by 5.3 per cent, putting its market share at 15.1 per cent.

Matching its previous share high of 2 per cent, Ocado was again the fastest-growing British grocer. Its sales rose by 11.7 per cent, exceeding the overall online market growth rate of 5.7 per cent.

Over the past 12 weeks, online has accounted for 12 per cent of all sales at the grocers, with 23 per cent of households making at least one virtual shopping trip.