UK grocery inflation rose to 1.8% in the four weeks ending August 4, 2024, marking the first increase since March 2023.

This uptick follows a significant 17-month decline in inflation rates, which had previously dropped from a peak of 17.5% to its lowest level since September 2021.

Fraser McKevitt from Kantar noted that the slight rise in inflation reflects a return to average levels seen before the cost of living crisis.

The British Retail Consortium has warned of renewed inflationary pressures due to the fading effects of last year's commodity price drop and climate change impacts on harvests.

Grocery sales value increased by 3.8% year-on-year during this four-week period, influenced by events like the Euro 2024 soccer championship and the Paris Olympics.

As of early August 2024, Tesco maintained a market share of 27.6%, followed by Sainsbury's at 15.3% and Asda at 12.6%.

Ocado emerged as the fastest-growing UK supermarket with an impressive 11.3% increase in sales year-on-year, while Tesco and Sainsbury's reported growth of 4.9% and 5.2%, respectively.

In contrast, Asda faced challenges with a 6.0% decline in sales, following a reported 5.3% drop in second-quarter sales.

Sainsbury's stood out as the fastest-growing traditional supermarket, achieving a 5.2% increase in sales and the largest market share gain since July 1997.

Promotions by grocers have helped consumers manage their shopping bills, resulting in a 15% rise in spending on deals, while regular-priced product sales remained stagnant.

Prices increased across 182 product categories, while 89 categories saw price drops, with kitchen towels and baked beans becoming 7% and 5% cheaper, respectively.