UK grocery price inflation rose to 3.8% in April, up from 3.5% the previous month, adding further pressure on consumers already grappling with rising energy, council tax, and water bills. According to the latest data from market researcher Kantar, this marks the highest grocery inflation level since late 2023, when it fell to a low of 1.4% in October.
The figures reflect a competitive retail environment where UK supermarkets are ramping up discounts and promotions to attract customers. Total grocery sales grew by 6.5% in the four weeks ending 20 April, boosted by the later timing of Easter and a surge in promotional activity.
Supermarkets Compete on Prices as Pressure Mounts
Kantar’s Head of Retail and Consumer Insight, Fraser McKevitt, said: “The grocers have been sharpening their pricing strategies to stay competitive in the fight for footfall.” Asda, the UK’s third-largest food retailer, recently warned that it would accept lower profits to support its price-cutting strategy and regain market share.
This aggressive pricing move has prompted Tesco and Sainsbury’s—Britain’s two biggest supermarkets—to signal that their own profits may come under pressure amid an escalating price war.
Lidl and Ocado Lead Growth, Asda Continues to Lag
Despite ongoing challenges, Asda showed signs of recovery, with sales falling 3.8% year-on-year in the 12 weeks to 20 April, an improvement from the 5.6% drop reported last month. Meanwhile, Lidl was the top-performing traditional supermarket, with year-on-year sales growth of 10.1%, followed by Tesco at 6.0% and Sainsbury’s at 4.4%.
Online grocer Ocado posted the strongest overall growth with an 11.8% rise in sales, although its market share remains modest at 1.9%. Other chains such as Aldi (up 5.9%), Waitrose (up 3.2%), and Iceland (up 2.0%) also reported solid growth.
New Costs and Inflation Risks Ahead
The British Retail Consortium warned of further upward pressure on prices due to rising operational costs, including a packaging levy set to take effect in October. Its separate survey showed food price inflation hitting 2.6% in April—its highest level in nearly a year.
As the cost of living crisis persists, British consumers continue to feel the squeeze, with supermarket strategies playing a crucial role in shaping household budgets.
