UK grocery price inflation has surged to its highest level in over a year, reaching 4.1% in May – the steepest rise since February 2024.
The jump has been fuelled by rising costs of everyday items such as butter, chocolate, and sun cream, as households stocked up for barbecues during an unusually warm spring.
According to the latest figures from retail analysts Kantar, inflation has accelerated from 3.8% in April, prompting British consumers to increasingly seek out discounts and switch to supermarket own-label products in an effort to rein in household spending.
Aldi and Lidl have emerged as the biggest winners in the battle for value, experiencing their strongest combined growth since January 2024, with sales up 8.4%.
Lidl saw the fastest growth among all physical retailers, with sales climbing nearly 11%, pushing its market share to a record 8.1%. The discounter attracted 419,000 additional customers compared to the same period last year.
Aldi also achieved a new high, capturing 11.1% of the UK grocery market after a 6.7% rise in sales – its fastest growth in over a year.
In contrast, Asda continues to face challenges. Despite recording its best performance in 12 months, the supermarket’s sales still declined by 3.2%, and its market share dropped to 12.1% – putting it just one point ahead of Aldi.
Meanwhile, Marks & Spencer outperformed expectations. The premium retailer saw grocery spending jump by 12.3%, even after suffering disruptions from a recent cyber-attack.
The Co-op also managed modest growth of 0.6%, despite facing similar supply chain issues that affected stock availability in stores.
Grocery spending across the UK rose slightly ahead of inflation, as shoppers embraced the sunny weather and fired up their barbecues earlier than usual.
Demand for traditional BBQ items like chilled burgers spiked, with sales surging by 27%. Other seasonal favorites, including salads and coleslaw, also saw increased popularity.
As food price inflation remains a key concern for households, retailers are likely to see continued pressure from consumers looking for savings, while discounters strengthen their foothold in the UK’s competitive supermarket sector.
