LONDON (ShareCast) - (Sharecast News) - Shop price inflation continued to soften in January, industry data showed on Tuesday, reaching a nine-month low.

According to data from Worldpanel by Numerator, like-for-like grocery price inflation was 4%, down on December's 4.3% and the lowest level since April 2025. Prices rose fastest in markets such as chocolate, confectionary and chilled milk and cream, and fell at the fastest rate in dishwashing and sugar confectionary.

However, shoppers continued to seek out bargains, with own label accounting for 52.2% of grocery spending in the four weeks to 25 January, the highest ever level recorded.

Fraser McKevitt, head of retail and consumer insight at Worldpanel, said: "For most shoppers, January is all about resetting budgets and this year was no exception. While grocery sales continue to grow and inflation eased to its lowest level in months, value remained front of mind for many."

Overall take-home retail sales rose 3.8% at grocers in the four-week period.

Among individual grocers, Lidl was the fastest growing bricks and mortar retailer, with sales sparking 10.1% over the 12 weeks to 25 January. It now has a market share of 7.7%.

Rival discounter Aldi saw sales rise 3.8% over the same period, giving it a 10.1% market share.

Tesco, the UK's largest grocer with a market share of 28.7%, saw sales rise 4.4%. Its closest rival, J Sainsbury, recorded a larger rise of 5.3%, with a market share of 16.2%.

Online-only Ocado Group continued its strong run in sales, up 14.1%, helping to push its market share up to 2.1%.

Waitrose, part of John Lewis Partnership, saw sales spark 5.5%.

At Marks and Spencer Group, grocery sales jumped 6.9% over the 12 weeks. However, Worldpanel does not include the retailer in the overall rankings, due to the higher proportion of clothing and general merchandising in its sales mix.

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