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Grocery price inflation eased back to 4% in January, reaching its lowest point since April, new data shows. The drop from December's 4.3% came as supermarket own-brand products accounted for 52.2% of grocery purchases, hitting an unprecedented high, according to market research company Worldpanel by Numerator.

Spending on promotional items surged 10.9% year-on-year, representing the fastest growth rate since October 2024, whilst full-price product sales climbed by just 1.7% compared to the same four-week period last year. Fraser McKevitt, head of retail and consumer insight at Worldpanel, said: "For most shoppers, January is all about resetting household 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, with own-label hitting a record high, accounting for more than half of all grocery spend."

In January, nearly a quarter of consumers (23%) sought high-protein foods, whilst 26% sought high-fibre options, a Worldpanel survey found.

Cottage cheese sales rocketed 50% year-on-year, purchased by 2.8 million households - approximately 600,000 more than last year.

Fresh fruit and dried pulse sales climbed 6% year-on-year, alongside fresh fish rising 5%, poultry increasing 3%, and chilled yoghurt growing 4%.

So-called functional beverages - those promoted as delivering health advantages including energy boosts, digestive wellness or mood improvement - were purchased by 11% of households, with expenditure rising 13% compared to last year.

Mr McKevitt said: "In a month when consumers typically look to rein in spending, it is notable how many are still willing to pay a premium for wellness, with functional drinks costing nearly four times as much as typical soft drinks at £4.69 per litre."

Lidl emerged as the fastest-expanding physical retailer, recording sales growth of 10.1% across the 12 weeks to January 25 versus the corresponding period last year.

Ocado's revenue climbed 14.1%, pushing the digital grocer's market share to 2.1%.

Sainsbury's saw a 5.3% surge in till receipts, whilst Tesco recorded sales growth of 4.4% to capture 28.7% of the market. Waitrose delivered the steepest increase in average basket spend amongst grocers, though its market share remained stable at 4.7%.

M&S grocery sales jumped 6.9% higher when compared to the equivalent quarter last year. Asda's revenue dropped 3.7% year-on-year, whilst Co-op's sales declined 1.6%.