Grocery inflation slows for a second month, with prices 4.9% higher than a year earlier. The figure is down from last month’s 5.0% and July’s 5.2%. The data is published by Worldpanel by Numerator, the research arm formerly known as Kantar. Fraser McKevitt, head of retail and consumer insight at Worldpanel, said: “Prices might not be climbing quite as quickly, but they’re still on the rise and the battle between own-label lines and brands continues as household finances remain tight.”

Own-label products now account for 51.2% of sales, up from 50.9% a year earlier. Their sales rose by 5.9% in the period, ahead of brands at 5.3%, while premium own-label goods climbed 10.3%. Brands are holding ground in some categories, including toothbrushes, frozen chicken and baby toiletries. As students returned to school, sales of lunchbox staples surged versus the previous fortnight, with yoghurt up 26%, sliced cooked meats up 17% and cheddar cheese up 24%. While sandwiches remain common in many lunches, they are disappearing from some school bags as cooked poultry options take their place, Worldpanel said. While overall school uniform sales dipped slightly over the summer, grocery retailers grew ahead of the market at 8.4%. McKevitt said: “Value is still at the front of shoppers’ minds, and retailers have tapped into this. Average prices have fallen, and buyers have increased their basket sizes as they aim to make the most of the discounts on the table.”

Worldpanel data shows families are turning to the second-hand market in search of deals, with 13.1% of schoolwear shoppers buying pre-worn. In the 12 weeks to 7 September, Tesco held 28.4% of the market, up 0.8 percentage points on a year earlier, with spending rising 7.7% — its strongest growth since December 2023. Ocado was the fastest-growing retailer, with sales up 11.9%. Sainsbury’s tills were 5.4% higher, lifting its market share to 15.1%. Lidl was the fastest-growing bricks-and-mortar retailer, with sales up 11% and a share of 8.2% (from 7.8% in 2024). Aldi kept a 10.7% share with spending up 4.7%. M&S groceries rose 5.9% from a year ago.