Finance
UK Grocery Inflation Eases to Nine‑month Low of 4.0%, Says Worldpanel
Published by Global Banking & Finance Review®
Posted on February 3, 2026
2 min readLast updated: February 3, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on February 3, 2026
2 min readLast updated: February 3, 2026
UK grocery inflation dropped to 4.0%, the lowest in nine months, affecting supermarket sales and consumer behavior.
LONDON, Feb 3 (Reuters) - UK grocery inflation eased to 4.0% in the four weeks to January 25, the lowest level since April last year, providing some relief to shoppers, data from market researcher Worldpanel by Numerator showed on Tuesday.
Grocery inflation was 4.3% in its previous report.
The figure from Worldpanel provides an early indication of pricing pressures ahead of official UK inflation data on February 18.
The Bank of England is watching food prices closely as it believes they play a key role in shaping the public's overall inflation expectations. Britain's headline inflation rate rose to 3.4% in December, the highest in the Group Seven rich economies.
Worldpanel said UK grocery sales rose 3.8% over the four week period year-on-year in value terms - a decline in volume terms after inflation is taken into account.
VALUE FRONT OF MIND FOR UK CONSUMERS
"While grocery sales continue to grow and inflation eased to its lowest level in months, value remained front of mind for many – with own label hitting a record high, accounting for more than half of all grocery spend," said Fraser McKevitt, head of retail and consumer insight at Worldpanel.
Over the 12 weeks to January 25, industry leader Tesco's sales rose 4.4% year-on-year and its market share grew 20 basis points to 28.7%. Number two Sainsbury's sales increased 5.3%, taking its share to 16.2%.
Discounter Lidl GB remained the fastest growing bricks-and-mortar retailer, with sales up 10.1%, while online supermarket Ocado remained the fastest growing overall, with sales up 14.1%.
Number three player Asda continued to struggle - its sales fell 3.7%, giving it a market share of 11.5%, down 80 basis points on the year.
UK supermarkets' market share and sales growth (%)
% change in
Market share Market share sales
12 weeks to 12 weeks to (year-on-ye
Jan 25 2026 Jan 26 ar)
2025
Tesco 28.7 28.5 4.4
Sainsbury's 16.2 16.0 5.3
Asda 11.5 12.3 -3.7
Aldi 10.1 10.1 3.8
Morrisons 8.4 8.5 2.5
Lidl 7.7 7.3 10.1
Co-operative 5.0 5.3 -1.6
Waitrose 4.7 4.7 5.5
Iceland 2.3 2.3 3.2
Ocado 2.1 1.9 14.1
Source: Worldpanel by Numerator
(Reporting by James Davey, Editing by Paul Sandle)
Grocery inflation refers to the rate at which the prices of grocery items increase over time. It is an important economic indicator that affects consumer purchasing power.
Market share is the percentage of an industry's sales that a particular company controls. It is a measure of a company's competitiveness in the market.
Consumer behavior is the study of how individuals make decisions to spend their resources on consumption-related items. It includes the analysis of consumer preferences and purchasing habits.
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured by the Consumer Price Index (CPI).
The Bank of England is the central bank of the United Kingdom, responsible for issuing currency, maintaining monetary stability, and overseeing the financial system.
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