(Sharecast News) - Grocery price inflation in the UK has risen to its highest level in 15 months, according to data out on Wednesday from consumer research firm Kantar, as retailers hike prices to adapt to higher payroll costs.
Compared with last year, grocery prices were up 4.1% over the four weeks to 18 May, with inflation accelerating from the 3.8% reported the previous four weeks.

That was the highest year-on-year increase since February 2024, according to Kantar.

The pick-up in inflation was thought to be a result of higher employer national insurance contributions and the increased National Living Wage rate which both came into effect in April.

"This latest jump in grocery price inflation takes us into new territory for 2025," said Fraser McKevitt, head of retail and consumer insight at Kantar.

"Households have been adapting their buying habits to manage budgets for some time, but we typically see changes in behaviour once inflation tips beyond the 3% to 4% point as people notice the impact on their wallets more."

The news came as take-home grocery sales rose 4.4% year-on-year over the same period, with May's unseasonably warm weather driving sales of barbecue food - chilled burger sales were up 27% over last year, while potato salad sales surged 32% - and sun cream.

Over the 12 weeks to 18 May 2025, sales at market leader Tesco were up 5.9% at £9.39bn, with its share of the market rising 0.4 percentage points year-on-year to 28.0%.

Sales at Sainsbury's and Morrisons also grew 4.7% and 1.1%, while Asda sales slumped 3.2%. Discounters Aldi and Lidl meanwhile, surged 6.7% and 10.9% respectively.

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