Supermarket prices are rising for the first time since March 2023, with the average up from 1.6 percent to 1.8 percent.
New analysis found annual increases across 182 product categories, including chocolate, fruit juices and vitamin tablets.
At the same time, there were falls across 89 categories, including baked beans, dog food, toilet and kitchen tissue, and bottles of cola.
The figures come from retail analysts Kantar, who also picked up a surge in sales of burgers and ice cream, due to the late summer heatwave.
Its head of retail and consumer insight at Kantar, Fraser McKevitt, said: “Having reached its lowest rate in almost three years in July, August saw inflation nudge up again slightly. While this is noticeable following 17 straight months of falling rates, it actually marks a return to the average levels seen in the five years before the start of the cost of living crisis.”
The Kantar figures show kitchen towels are down by 7 percent on a year ago with baked beans also 5 percent cheaper.
“Prices are rising fastest in markets such as vitamins/minerals/supplements, fruit juices and drinks and chocolate confectionery and are falling fastest in toilet tissues, bottled colas and dog food,” it said.
Mr McKevitt said: “With this kind of pricing spread, shoppers will find that the type of product they’re putting in their baskets will really dictate how much they pay.
“They’re continuing to take advantage of the wide range of promotions being offered by the grocers to help keep the price of shopping down. Spending on deals rose by 15 percent, while sales of products at their usual price saw no increase.”
Despite the ongoing pressures on consumers, this month saw people getting into the party spirit to celebrate the summer of sport.
He said: “While people continue to make smart choices to manage their budgets, we should never underestimate Britons’ love of big occasions.”
Many marked the start of the Olympics over drinks and snacks – sales of wine were up 35 percent, while nuts increased 60 percent and crisps rose by 10 percent on the Friday of the opening ceremony in Paris, compared with the previous week.
England fans also roared on The Three Lions as the men’s UEFA European Football Championship reached its closing stages with £10 million spent on beer on the day of the final, the most spent on a Sunday in more than three years.
The late arrival of summer sun triggered a rush to fire up barbecues. Sales of burgers leapt by 32 percent compared with the same time last year.
Chilled prepared salad sales rose by 22 percent while the amount spent on ice cream was up 23 percent.
However, it wasn’t all fun in the sun for a rise in Covid and other summer bugs saw a 28 percent rise in sales of cough lozenges.
Looking at the performance of the leading supermarkets, Kantar found that Sainsbury’s did particularly well. It increased its market share by 0.5 percentage points over the 12 weeks to August 4, compared to the same period last year – its largest year-on-year share gain since July 1997. It was again the fastest growing of the traditional supermarkets, with sales increasing by 5.2 percent.
Britain’s largest grocer Tesco has now maintained its streak of winning share every month since August 2023. Its hold of the market climbed by 0.6 percentage points to 27.6 percent, while its sales jumped by 4.9%. Asda now takes 12.6 percent share, while Morrisons’ stake stands at 8.6 percent.
Discounters Lidl and Aldi both saw sales growth. Aldi now has a 10 percent market share with Lidl on 8.1 percent.
Sales rose by 11.3 percent at online-only retailer Ocado, continuing its 6-month run as the fastest growing grocer.
Waitrose’s share increased by 0.1 percentage point to 4.5 percent after sales also rose 4.5 percent.
Iceland now holds a 2.3 percent share, as shoppers there spent 4.1 percent more at its tills, while Co-op takes 5.9 percent of the market.
