Grocery inflation picks up as families tighten budgets for back-to-school season
August saw grocery price inflation rise to 2.3% year-on-year, while families cut back on school uniform spending and shop fewer trips.
According to Worldpanel, grocery price inflation accelerated to 2.3% in August, reversing a brief dip to 2.1% the previous month. The start of the academic year prompted a 12.4% decline in average uniform spending, now averaging £54.53, as families turn to discounts and used items. Overall supermarket footfall fell by 18 million trips in September versus the July high of 497 million, indicating a seasonal slowdown and a focus on priority goods.
Fraser McKevitt noted that value is now the dominant concern for parents, with 44% prioritising low cost over quality. Retailers responded: Asda recorded a 0.1% sales rise, Ocado achieved a 13.3% year-on-year increase for the 30th month, and Lidl expanded its market share to 8.7%, driven by strong confectionery and fresh produce sales.
Why it matters
Rising grocery inflation and shifting spending habits signal pressure on household budgets during a key seasonal period.
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