LONDON (ShareCast) - (Sharecast News) - UK grocery inflation crept higher in September, industry data showed on Tuesday, prompting shoppers to seek out special offers as they juggled mounting costs.
According to the latest data from Worldpanel by Numerator, like-for-like grocery price inflation was 5.2% in the four weeks to 5 October, up from 4.9% in September and on par with July's record high.

Prices rose fastest in chocolate confectionary, fresh unprocessed meat and coffee, and fell fastest in household paper and sparkling wine.

Take-home grocery sales rose by 4.1% in the same period.

Worldpanel said shoppers were increasingly being selective about what groceries to buy, and where.

Spending on offers hit 29.4%, while discounter Lidl saw sales surged 10.8% in the 12 weeks to 5 October, giving it an 8.2% market share.

Discounters now command nearly a fifth of the UK grocery market, after rival Aldi posted growth of 4.3%, giving it a market share of 10.6%.

Fraser McKevitt, head of retail and consumer insight at Worldpanel, said: "Households are juggling a lot of different things when choosing what and where to buy their groceries. Inevitably cost will be up towards the top of the list, as price rises accelerate.

"Spending on offers has hit its highest level since April, as consumers hunt for deals to ease the burden on their wallets.

"Promotions often jump in the run-up to the festive season, so it's likely the trend will continue as we get closer to December."

Among the other grocers, Tesco maintained its leading position after sales rose 6.9%, giving it a market share of 28.3%.

Its closest rival, J Sainsbury, saw sales improve 5.2%. In contrast, Morrisons posted a more modest 1.7% uptick, while Asda saw sales slide 3.2%. Both have been hit hard by increased competition from discounters.

However, upmarket chain Waitrose - part of the John Lewis Partnership - also saw sales climb, up 3.7%, while online-only Ocado, which supplies Marks & Spencer branded food, saw sales surge 13.6%. Its market share is now 2%.

Online sales across the sector grew by 12% during the four weeks, and now make up 12.7% of the market - the highest share since March 2022.

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