18th Aug 2026 11:09
(Sharecast News) - UK grocery price inflation eased to its lowest level in nearly two years in August, while hot weather drove strong demand for summer staples including ice cream, dips and soft drinks, according to Worldpanel by Numerator.
Grocery inflation slowed to 2.1% in the four weeks to 9 August, from 2.6% previously, marking a fifth consecutive month of easing and the lowest rate since October 2024. Take-home grocery sales growth also moderated to 2.5%.
Average household grocery spending was £410 over the four-week period, £14.24 below the previous period, while 39% of shoppers reported feeling financially comfortable, the highest proportion since November 2021. However, 20% said they were struggling financially.
Promotional activity remained strong, with 31.3% of sales involving a deal, the highest level this year.
Meanwhile, continued hot weather boosted demand for seasonal products. Sales of dips rose 23.3% from last year, while coleslaw sales were up 23.1% and potato salad sales up 22%, while sun cream sales jumped 58.4%. Ice cream and sorbet sales increased 26.1% over the year before and frozen fruit surged 48.1%.
Worldpanel said: "The continued heat across the UK has certainly impacted the way people are eating and drinking."
Among individual grocers, Ocado remained the fastest growing, with sales up 13.1% over the 12 weeks to 9 August, while Lidl gained the most market share, rising 0.5 percentage points to 8.8% after attracting 736,000 additional shoppers.