UK grocery prices have increased at their fastest pace for 18 months amid growing concern from shoppers about the rising cost of living, according to new figures.
Grocery price inflation accelerated to 5.2% in the four weeks to July 13, according to market research firm Worldpanel by Numerator, which was recently renamed from Kantar.
It represented a rise from inflation of 4.7% a month earlier and marked the highest level since January 2024.
The data indicated that rising prices are set to add an average of £275 to shoppers’ annual grocery spending.
Fraser McKevitt, head of retail and consumer insight at Worldpanel, said: “Just under two thirds of households say they are very concerned about the cost of their grocery shopping, and people are adapting their habits to avoid the full impact of price rises.
“Own label products, which are often cheaper, continue to be some of the big winners and, in fact, sales of these ranges are again outpacing brands, growing by 5.6% versus 4.9%.”
He added that shopping data also showed that consumers have been cooking simpler meals in recent months as part of efforts to stick to budgets.
The price increases come amid a backdrop of commodity price pressures and higher costs for retailers, after recent increases in National Insurance contributions and the national minimum wage.
Worldpanel data also showed that overall consumer spending across UK grocers rose by 4.6% over the 12 weeks to July 13.
Online retail specialist Ocado saw the fastest rise in sales over the period, with 11.7%.
It was closely followed by German discount chain Lidl, which saw sales rise 11.1%, to take its share of the UK grocery market to 8.3%, moving it close to the size of rival Morrisons.
Elsewhere, the UK’s largest supermarket chain Tesco increased its share of the market further after growing sales by 7.1%.
Asda and the Co-op were among the weaker performers, with sales declines of 3% and 3.7% respectively over the quarter.
