UK grocery price inflation accelerated in August as households increasingly changed their spending habits to manage persistent pressure on living costs, with shoppers making fewer supermarket trips and seeking out discounts.
Supermarket prices were 2.3 per cent higher than a year earlier, up from 2.1 per cent in August, according to data from Worldpanel by Numerator.
The figures point to a continuing shift in consumer behaviour, particularly as families faced the additional costs associated with the return to school.
Average spending on school uniforms fell 12.4 per cent to £54.53 compared with the same period last year, as households made greater use of promotions and second-hand clothing to keep costs under control.
Fraser McKevitt, head of retail and consumer insight at Worldpanel, said: “The end of the summer holidays typically brings a cooling in trip frequency and a pivot towards priority purchases, and this year is no exception.
“While grocery inflation ticked up modestly last month, it remains significantly lower than the levels we saw earlier in the year, giving households some welcome breathing room.”
Shoppers made 18mn fewer supermarket visits in September than at the July peak of 497mn, suggesting households were becoming more selective about when and where they spent.
McKevitt said the back-to-school period had highlighted the extent to which price was influencing purchasing decisions.
“Value is the watchword for parents this back-to-school season,” he said.
“More than four in 10 households (44%) are now prioritising keeping costs low above all else when it comes to buying uniform, even if that means compromising slightly on quality, while a third (33%) are still looking to strike a balance between the two.
“It’s a clear sign that, for many families, the return to school is landing at a difficult time financially, and retailers who can offer reassurance on price without compromising on quality will stand in good stead.”
Food choices were also shifting as families prepared for the new school term. Sandwiches appeared in more than half of children’s lunchboxes, while the number of households buying bread increased by more than 500,000 in the seven days to September 6 compared with the previous week.
Purchases of satsumas and cucumbers rose by 29 per cent and 21 per cent respectively in the final week before schools returned.
Promotional pricing has become increasingly important. Spending on grocery deals rose by £243mn, or 7 per cent, year on year, substantially outpacing the 1.4 per cent increase in full-price sales.
The latest figures also showed diverging performances among the major supermarket groups.
Asda returned to growth for the first time since March 2024, with sales increasing 0.1 per cent over the 12 weeks to September 6. The retailer held an 11.5 per cent share of the market, rising to 16 per cent in northern England, and outperformed the wider market in categories including hot drinks, ice cream and chilled poultry.
Ocado remained the fastest-growing grocer for the 30th consecutive month, with sales rising 13.3 per cent year on year and its market share reaching 2.2 per cent.
Lidl also continued to gain ground, increasing its share to 8.7 per cent from 8.3 per cent a year earlier, supported by strong sales of confectionery, soft drinks and fresh produce.
The figures suggest that while headline grocery inflation is well below the peaks seen during the cost-of-living crisis, households remain highly sensitive to price — creating a competitive advantage for supermarkets able to combine discounts with perceptions of value.
Leave a Comment