The slowdown followed the first increase in over a year recorded last month, when the inflation rate stood at 1.8%.
During the last week of August, sales of fromage frais, cereal and fruit bars shot up by 14%, while chocolate biscuit bars increased by 12% ahead of the new school year, according to analytics firm Kantar.
However, shoppers are still hunting for bargains and Fraser McKevitt, head of retail and consumer insight at Kantar, said: “More than half of all grocery trips include some kind of deal”.
He added: “This proportion rises as the trolley gets bigger.”
This bargain-hunting habit has contributed to sales of promotional items rising year-on-year for the 16th month in a row.
Kantar said the spending behaviour is spurred on as “memories of the last two years remain strong, with nearly 60% of shoppers still very or extremely concerned about rising grocery prices.”
Due to the rising demand for lunchbox staples, the prices on the shelves are increasing fastest in chilled fruit juices and chocolate confectionery. There is also an upward trend in the cost of the vitamins, minerals and supplements market.
At the other end of the scale, prices are dropping at the fastest rate on toilet rolls, dog food and bottled colas.
With many shoppers’ minds turning towards getting ready for the new term, the take-home sales of retailers rose by 3% compared to the same time in 2023.
Ocado’s growth does it again
Ocado continued its march as the fastest growing grocer for the seventh consecutive month. The online-only retailer saw sales increase by 12.9% – its quickest rate of growth for almost four-and-a-half years. Overall, its market share nudged up by 0.2% to stand at 1.8% for September.
Lidl’s sales shot up by 9.1% compared to last year, as shoppers flocked to cash in their digital vouchers to use in its bakery section.
The budget retailer holds 8% of the grocery market, while its rival Aldi had its sales rise by 1.3%.
Tesco remains the store that holds the lion’s share of customers’ spending, with 27.8% of the market and a 0.6% rise on last year, prompting its highest proportion of the market since January 2022.
Meanwhile, Sainsbury’s, Asda and Morrisons hold 15.2%, 12.6% and 8.5% of the market respectively.
After tickets for the huge – and controversial – Oasis Live ’25 tour went on sale last week, Kantar also reflected on the prices of goods when the Gallagher brothers last shared a stage in 2009.
Its trip down memory lane found that sales of oven chips soared by 44%, while lager and beer sales to be consumed at home have also shot up, rising by 12% compared to 15 years ago.
