UK grocery inflation slowed to its lowest level in nine months in late January, easing pressure on household budgets as food price rises continue to cool.
According to new data from Worldpanel by Numerator, grocery inflation fell to 4.0% in the four weeks to January 25, down from 4.3% in the previous reporting period. It marks the lowest rate recorded since April last year and signals a gradual stabilisation in supermarket pricing.
The figures provide an early snapshot of food price trends ahead of the UK’s official inflation data, due to be published on February 18.
Food prices remain a key focus for the Bank of England, which views grocery costs as a major driver of consumer inflation expectations. Britain’s headline inflation rate climbed to 3.4% in December, the highest among the Group of Seven (G7) advanced economies, keeping pressure on policymakers.
Despite easing inflation, shoppers remain highly price-conscious. Worldpanel reported that UK grocery sales rose 3.8% year-on-year in value terms over the four-week period, though volumes declined once inflation was taken into account.
Supermarket performance remained mixed but resilient. Over the 12 weeks to January 25, market leader Tesco posted a 4.4% increase in sales, lifting its market share by 20 basis points to 28.7%. Rival Sainsbury’s recorded stronger growth, with sales rising 5.3%, pushing its market share up to 16.2%.
The latest data suggests that while price pressures are easing, UK shoppers continue to prioritise affordability, with own-brand products and competitive pricing playing an increasingly central role in supermarket strategies. Photo by Andy Parrett / Sainsbury's Supermarket, Canterbury / CC BY-SA 2.0, Wikimedia commons.
