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UK grocery inflation edges higher to 4.3%, says Worldpanel

Published by Global Banking & Finance Review

Posted on March 3, 2026

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· Last updated: April 2, 2026

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UK grocery inflation edges higher to 4.3%, says Worldpanel
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LONDON, March 3 (Reuters) - UK grocery inflation edged up to 4.3% in the four weeks to February 22, dealing a new blow to consumers after it eased in January, data from market researcher Worldpanel by

UK grocery inflation edges higher to 4.3%, says Worldpanel

Grocery Inflation Trends and Market Impact

LONDON, March 3 (Reuters) - UK grocery inflation edged up to 4.3% in the four weeks to February 22, dealing a new blow to consumers after it eased in January, data from market researcher Worldpanel by Numerator showed on Tuesday.

Grocery inflation had hit a nine-month low of 4.0% in its previous report.

The figure from Worldpanel provides an early indication of pricing pressures ahead of official UK inflation data on March 25.

Key Drivers of Grocery Inflation

Meat, Skin Care and Chocolate Prices Rising Fastest

MEAT, SKIN CARE AND CHOCOLATE PRICES RISING FASTEST

It said prices are rising fastest in markets such as fresh unprocessed meat, skin care and chocolate confectionery and falling fastest in chilled butter and spreads, household paper and sugar confectionery.

Central Bank and Retailer Perspectives

The Bank of England is watching food prices closely as it believes they play a key role in shaping the public's overall inflation expectations. Britain's headline inflation rate eased to 3% in January.

Separate data on Tuesday from the British Retail Consortium showed annual shop price inflation slowed to 1.1% in February, with food inflation easing to 3.5%.

Supermarket Performance and Market Share

Sales Growth Among Leading Retailers

Worldpanel said that over the 12 weeks to February 22 industry leader Tesco's sales rose 4.5% year-on-year and its market share grew 20 basis points to 28.7%. Number two Sainsbury's sales increased 5.2%, taking its share to 16.1%.

Discounter Lidl GB remained the fastest growing bricks-and-mortar retailer, with sales up 10.0%, while online supermarket Ocado remained the fastest growing overall, with sales up 15.1%.

Number three player Asda continued to struggle - its sales fell 2.6%, giving it a market share of 11.5%, down 80 basis points on the year.

Market Share Table

UK supermarkets' market share and sales growth (%)

% change in

Market share Market sales

12 weeks to share 12 (year-on-ye

Feb 22 2026 weeks to ar)

Feb 23

2025

Tesco 28.5 28.3 4.5

Sainsbury's 16.1 15.8 5.2

Asda 11.5 12.3 -2.6

Aldi 10.1 10.2 3.1

Morrisons 8.4 8.5 2.3

Lidl 7.8 7.3 10.0

Co-operative 5.0 5.3 -1.6

Waitrose 4.8 4.7 5.6

Iceland 2.3 2.3 2.7

Ocado 2.1 1.9 15.1

Source: Worldpanel by Numerator

(Reporting by James Davey; editing by Sarah Young)

Key Takeaways

  • Grocery inflation edged up to 4.3%, reversing January’s easing, signalling renewed cost pressure for consumers.
  • Fastest-rising items include fresh unprocessed meat, skin care and chocolate confectionery, while prices fell for chilled butter, household paper and sugar confectionery.
  • Retailers’ performance varied: Tesco and Sainsbury’s saw sales and share gains; Lidl and Ocado grew fastest; Asda’s sales and share declined.
  • Broader shop price inflation softened to 1.1% in February, and food-specific inflation was 3.5%, offering some respite.
  • Underlying pressures—such as labor, regulatory costs and sector-specific trends—signal inflation remains sensitive and could complicate Bank of England policy moves.

References

Frequently Asked Questions

What was the UK grocery inflation rate in late February?
UK grocery inflation edged up to 4.3% in the four weeks to February 22, according to Worldpanel.
Which grocery categories had the fastest rising prices?
Fresh unprocessed meat, skin care, and chocolate confectionery experienced the fastest price increases.
How did Tesco and Sainsbury's perform in this period?
Tesco's sales rose 4.5% and Sainsbury's sales increased 5.2% year-on-year.
Which retailer showed the fastest growth?
Online supermarket Ocado was the overall fastest growing retailer, with sales up 15.1%.
How did Asda perform compared to other supermarkets?
Asda's sales fell 2.6%, reducing its market share to 11.5%.

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