Grocery price inflation eases concerns about impact of Middle East crisis
Grocery price inflation slowed again this month, easing concerns about the impact of the Middle East conflict filtering through to supermarket shelves.
Supermarket prices were 3% higher than a year ago in June, down from Mayโs 3.1% and Aprilโs 3.8%, figures from Worldpanel by Numerator show.
The period coincided with the UKโs hottest May day on record, which saw suncare sales increase by 128%, sales of fresh beef burgers rise 40% and sales of fresh prepared salads and chilled dips rise 13%.
Sales of no and low alcohol drinks were up 23%, outpacing the 6% growth in the wider beer and cider category.
Fraser McKevitt, head of retail and consumer insight at Worldpanel, said: โThereโs something very British about the way a heatwave changes the weekly shop, and shoppers didnโt need much encouragement to fire up the grill and turn to al fresco dining this time around.
โBarbecue staples performing well and shoppers turning to healthier options are a common summer trend, and we can expect to see this continue over the rest of June and into July, with the warm weather forecast to continue.โ
Worldpanelโs data shows that spending per person on food nearly doubles when households are barbecuing, at almost ยฃ5 per head compared with just over ยฃ2.50 for meals prepared inside.
Meanwhile, the World Cup led to supermarkets applying the highest levels of promotions to beer and cider, snacks and crisps and chilled pizza for five years this month.
Mr McKevitt said: โNearly a third of all grocery spending is now on promotion, and that upward streak shows no sign of breaking.
โCombined with strong online growth, it points to shoppers who know what they want and are increasingly confident about where and how to find the best deal. In short, retailers are having to compete hard for that summer shop.โ
Ocado was once again the fastest-growing grocer, with sales up 13.5% over the 12 weeks to June 14 compared with the same period a year ago.
Co-op also returned to growth, increasing its market share from 5.2% last year to 5.3% this year as sales grew by 2.7% after last yearโs cyberattack affected its figures for 2025.
Tesco, the UKโs largest grocer, now holds 28% market share with sales up 1.2%.
Asdaโs sales were down 3.6% on last year, giving it 12.1% of the market.
