Grocery price inflation in the UK continued to ease in May, despite concerns that the ongoing conflict in the Middle East could drive food costs higher. According to data from Worldpanel by Numerator, supermarket prices were 3.1% higher in May compared to the same month last year, down from 3.8% in April and 4.3% in March.

The slowdown in inflation comes as shoppers increasingly took advantage of promotions to manage their grocery bills. In May, 30.3% of sales were made with a deal, up from 28.4% a year earlier. Spending on full-price items remained nearly flat, showing a marginal increase of just 0.1%. Fraser McKevitt, head of retail and consumer insight at Worldpanel, noted that the easing inflation rate offers relief to consumers who had been bracing for further price hikes amid the Middle East crisis.

Retail sector trends highlighted shifts in market share and sales growth among major grocers. Ocado emerged as the fastest-growing supermarket with a sales rise of 10.2%, while Lidl reached a record market share of 8.6%. This suggests a competitive environment where discount retailers continue to attract more customers.

The data release comes shortly after the UK Government announced plans to suspend tariffs on certain food imports as part of measures to address rising living costs. Although the full list of affected products has not been disclosed, it is expected to include items such as biscuits, chocolate, dried fruit, and nuts.

While some experts remain cautious about potential future price pressures stemming from geopolitical instability, current data indicates a temporary easing of upward price trends in the grocery sector, reflecting both retailer strategies and consumer behavior.