Overview

• Grocery price inflation in the UK rose to 4.1% in May, its highest rate since February 2024.
• Higher costs for chocolate, sun cream and butter pushed prices up as warm weather boosted barbecue demand.
• Discounters Aldi and Lidl posted their strongest combined growth since January 2024 as shoppers hunted bargains.
• Ocado led online sales with a 14.9% jump, while Tesco grew revenues by 5.9% to secure a 28% market share.
• The British Retail Consortium warns that an upcoming packaging tax plus higher employer NICs could drive prices even higher.