UK grocery inflation edged lower in the four weeks to Sept. 1, data from market researcher Kantar showed on Tuesday, after rising for the first time in 18 months in last month's report.
It said annual grocery price inflation over the period was 1.7%, versus 1.8% in the previous four-week period.
Despite the fall, nearly 60% of UK households remained worried about the rising cost of their shopping, Kantar said.
"This is their second biggest financial worry, only behind home energy bills," said Fraser McKevitt, the researcher's head of retail and consumer insight.
The data, the most up-to-date snapshot of UK consumer behaviour published since the July 4 national election, showed prices were rising fastest in products such as vitamin and mineral supplements, chilled fruit juices and chocolate confectionery. The fastest falls were in prices of toilet tissue, dog food and bottled cola drinks.
Kantar's data showed grocery sales rose 3.0% in value terms over the four week period year-on-year, a slight slowdown from growth of 3.8% in last month's report.
Over the 12 weeks to Sept. 1, online supermarket Ocado (OCDO.L) was again the fastest growing grocer with sales up 12.9% year-on-year, its best rate of growth since May 2021, Kantar said.
Industry leader Tesco (TSCO.L) saw sales growth of 5.3%, with its market share hitting 27.8%, its highest since January 2022.
Sales at No. 2 Sainsbury's (SBRY.L) rose 5.7% but No. 3 Asda was again the laggard, with its sales down 5.6% and it lost 1.2 percentage points of market share year-on-year.
Last month, Asda's chairman, veteran retailer Stuart Rose, told the Telegraph newspaper he was "embarrassed" by the group's performance.
Kantar said discounters Aldi and Lidl saw sales growth of 1.3% and 9.1% respectively, though Aldi's market share edged lower.
Aldi said on Monday its subdued growth reflected its move to reduce prices ahead of the market.
UK supermarkets' market share and sales growth (%)
Source: Kantar
