Grocery price inflation in the United Kingdom continued its downward trend in May, easing to 3.1% year-on-year from 3.8% in April and 4.3% in March, according to data from Worldpanel by Numerator. The slowdown comes as consumers brace for potential cost increases stemming from the ongoing Middle East crisis.
Promotions Drive Spending
Shoppers increasingly turned to promotions to manage their budgets, with 30.3% of sales involving a deal last month, up from 28.4% a year earlier. Spending on full-price items remained virtually flat, growing by just 0.1%.
Fraser McKevitt, head of retail and consumer insight at Worldpanel, commented: “The easing in the rate of inflation is welcome news for shoppers who have been grappling with warnings of a hike in food prices due to the impact of the war in the Middle East.”
Government Action on Tariffs
The figures come days after the government announced plans to suspend tariffs on selected food imports as part of broader efforts to combat rising prices. While the full list of products has yet to be published, it is expected to include biscuits, chocolate, dried fruit, and nuts.
Retailer Performance
Ocado remained the fastest-growing grocer, with sales up 10.2% year-on-year, though this marks the slowest recorded rate of growth for the online specialist since July 2024. Discounter Lidl achieved a new record high market share of 8.6% over the 12 weeks to May 17, solidifying its position as Britain’s fifth-largest grocer behind Tesco, Sainsbury’s, Asda, and Aldi.
Tesco saw sales increase by 3.2%, with its market share rising to 28.2%. Sainsbury’s sales grew 3.1%, achieving a 15.2% share. Waitrose reported a 3% sales increase, while Marks & Spencer’s grocery sales rose by 9.3% over the quarter.
