UK Grocery Inflation Eases to 5% as Sales Rise

British grocery inflation has slightly eased to 5.0% in the four weeks to August 10, down from 5.2% in July, according to market researcher Worldpanel by Numerator. Despite this marginal drop, prices remain high enough to significantly impact consumer behavior, with shoppers adjusting spending to manage rising costs across categories such as chocolate, fresh meat, and coffee. Sales of branded grocery items increased by 6.1%, outpacing own-label alternatives, with branded products accounting for nearly half of all grocery spending and dominating sectors like personal care, confectionery, and drinks. The ongoing inflation is also affecting other parts of the economy, with casual and fast service restaurants seeing a 6% decline in visits over the summer months. Forecasts from the British Retail Consortium and the Bank of England suggest food inflation may rise further to 6% by year-end, while overall inflation could reach 5.5% before Christmas. Overall grocery sales grew by 4.5% year-on-year, with Tesco maintaining the largest market share and Lidl and Ocado emerging as the fastest growing grocers.