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UK grocery inflation sticks at 4.3% in March, says Worldpanel

Published by Global Banking & Finance Review

Posted on March 31, 2026

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· Last updated: April 1, 2026

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UK grocery inflation sticks at 4.3% in March, says Worldpanel
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By James Davey LONDON, March 31 (Reuters) - UK grocery inflation held at 4.3% in the four weeks to March 22, researcher Worldpanel by Numerator reported on Tuesday, maintaining pressure on consumers

UK Grocery Inflation Remains at 4.3% in March Amid Rising Food Prices

Grocery Inflation Trends and Market Impact

By James Davey

Current Inflation Rate and Contributing Factors

LONDON, March 31 (Reuters) - UK grocery inflation held at 4.3% in the four weeks to March 22, researcher Worldpanel by Numerator reported on Tuesday, maintaining pressure on consumers ahead of an expected further rise in food prices due to the Iran war.

The Worldpanel data provides an early indication of pricing pressures in March ahead of official UK data on April 22.

Price Movements in Key Food Categories

It said prices were rising fastest in markets such as unprocessed meat and coffee and falling fastest in butter and sugar confectionery.

Impact of Global Events on UK Food Prices

The first clear increase in prices paid by UK households due to the Iran war's impact on energy prices has been felt by drivers at the fuel pumps, while farmers have warned of higher food prices from next month, starting with tomatoes, cucumbers and peppers, which are grown in heated greenhouses.

Farmers have also said the soaring cost of fertiliser will eventually impact food prices.

Consumer and Retailer Responses

Household Budgets and Inflation Effects

Worldpanel said each additional 1% on the rate of grocery inflation could add over 50 pounds ($66) to the average household's annual bill.

"With grocery inflation likely to increase and fuel costs rising sharply, the conditions that make shoppers feel vulnerable are only intensifying," Fraser McKevitt, head of retail and consumer insight at Worldpanel, said.

Additional Cost Pressures on UK Households

Britons are already facing a jump in a raft of household bills in April, including council (local) taxes, water, mobile phone and broadband contracts.

Market Performance and Share Analysis

Shop Price Inflation and Sales Growth

Separate data on Tuesday from the British Retail Consortium showed overall shop price inflation edged up to 1.2% in March.

Worldpanel said UK grocery sales rose 4.4% over the four weeks year-on-year.

Supermarket Market Share Movements

It said that over the 12 weeks to March 22 industry leader Tesco and number two Sainsbury's continued to win market share.

Discounter Lidl GB remained the fastest growing bricks-and-mortar grocer, while online supermarket Ocado remained the fastest growing overall.

Number three player Asda continued to lose share.

UK Supermarkets' Market Share and Sales Growth (%)

% change in

Market share Market sales

12 weeks to share 12 (year-on-ye

March 22 weeks to ar)

2026 March 23

2025

Tesco 28.0 27.7 5.0

Sainsbury's 15.6 15.3 5.5

Asda 11.6 12.1 -0.9

Aldi 10.6 10.8 2.3

Morrisons 8.3 8.4 2.3

Lidl 8.3 7.8 9.6

Co-operative 5.1 5.4 -1.7

Waitrose 4.7 4.6 5.8

Iceland 2.3 2.4 2.3

Ocado 2.2 2.0 12.3

Source: Worldpanel by Numerator

($1 = 0.7583 pounds)

(Reporting by James Davey, Editing by Paul Sandle)

Key Takeaways

  • Grocery inflation held steady at 4.3% in late March, per Worldpanel, with unprocessed meat and coffee up fastest, butter and sugar confectionery down
  • Disruptions from the Iran war—spiking energy and fertiliser costs—are expected to push food inflation even higher, possibly above 8% by summer
  • Industry forecasts warn the average household could face over £150 extra per year in food bills if inflation worsens

References

Frequently Asked Questions

What was the UK grocery inflation rate in March?
UK grocery inflation held steady at 4.3% in the four weeks to March 22, according to Worldpanel by Numerator.
Which food categories saw the fastest price increases?
Prices rose fastest in unprocessed meat and coffee, while they fell fastest in butter and sugar confectionery.
How will grocery inflation affect UK households?
Each additional 1% in grocery inflation could add over 50 pounds to the average household's annual bill.
Which supermarkets gained market share in March?
Tesco and Sainsbury's continued to increase market share, while Lidl was the fastest growing bricks-and-mortar grocer.
What external factors are influencing UK food prices?
The Iran war's impact on energy prices and rising fertilizer costs are contributing to higher food prices.

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