Grocery inflation hits record 17.1% - Kantar

Grocery price inflation in the UK hit a new high in the four weeks to 19 February, according to data provider Kantar.

Inflation reached 17.1% - the highest level ever recorded by Kantar, pushing the average annual bill up by £811.

Take-home grocery sales rose 8.8% over the four-week period and 8.1% over the 12-week period.

Fraser McKevitt, head of retail and consumer insight at Kantar, said: "Shoppers have been facing sustained price rises for some time now and this February marks a full year since monthly grocery inflation climbed above 4%. This is having a big impact on people’s lives.

"Our latest research shows that grocery price inflation is the second most important financial issue for the public behind energy costs, with two-thirds of people concerned by food and drink prices, above public sector strikes and climate change. One quarter say they’re struggling financially, versus one in five this time last year."

The data showed that discounter Aldi pushed its market share to a new record of 9.4% from 8.0% and remains the fastest-growing grocer, with sales up 26.7%. It was closely followed by Lidl, which saw sales rise 25.4% and its market share increase to 7.1% from 6.1%.

Frozen food supermarket Iceland saw its market share tick up to 2.4% from 2.3%, with sales up 10.8%.

Kantar said Ocado put in a strong performance, bucking the overall trend in online sales, which fell 0.9% over the 12-week period. Its sales grew 11.3% and the company achieved its largest ever market share of 1.9%, up from 1.8%.

Tesco’s market share dipped to 27.3% from 27.7% in the same period a year earlier, while sales rose 6.6%. Sainsbury’s had market share of 15.2%, down from 15.5%, with sales up 6.2%, while Asda’s market share nudged down to 14.3% from 14.6% and sales were ahead 5.9%.

Morrisons sales fell 0.9% but this was its best performance since May 2021, while market share declined to 9.0% from 9.8%.

Waitrose returned to growth, with sales up 0.7% and a market share of 4.7%, down from 5.0%. Convenience retailer Co-op had a market share of 5.5%, down from 5.7%, with sales up 3.4%.