UK Grocery inflation at 2.3% in 4 weeks to Sep (vs 2.1% in Aug), Worldpanel says

A modest uptick of the kind shown here has tended to matter only where it runs against the broader disinflation trend, since food and energy pass-through has in past UK episodes been what kept headline inflation sticky and shaped the MPC's patience on easing. The read-across to the grocers themselves splits along the established fault line: the discounters and premium players have persistently taken share at the expense of the mid-market incumbents, and the share lines shown here follow that long-running pattern of the two largest players treading water while the online specialist compounds from a small base. Volume versus price is the distinction worth drawing in the sales growth numbers, since nominal gains in a rising grocery inflation environment flatter the top line; share is the cleaner signal of who is winning the underlying volume battle. The next touchpoints are whether the discounter share continues to grind higher and how this print sits against the official inflation data due shortly.