Supermarket prices are now 2 per cent more expensive than a year ago, according to industry data.

Price rises drove shoppers towards discounts – sales of promoted items jumped by 7.4 per cent in September while full price sales rose by just 0.3 per cent. Grocery inflation was up from 1.7 per cent in August.

Food inflation reached its lowest rate in almost three years in July but has since started to edged up again slightly.

Fraser McKevitt, head of retail and consumer insight at Kantar, said: “In the fiercely competitive retail sector, the battle for value is on.

“Supermarkets are doing what they can to keep costs down for consumers and thanks to their efforts the prices in some categories are falling.”

Prices are rising fastest in markets such as chilled soft drinks, chocolate confectionery and skin care, while the average price paid for toilet and kitchen roll is 6 per cent lower year-on-year, and dog and cat food are 4 per cent and 3 per cent cheaper respectively, Kantar found.

The rising cost of chocolate is being driven by record high cocoa prices from poor harvests in West Africa, a key production area

With spending squeezed growing numbers of consumers report they are struggling to balance their concerns about the environment with their own financial worries, with 59 per cent of Britons saying they are finding it harder to buy act sustainably, up from 44 per cent last year, a survey for Kantar found.

The unusually wet weather in September saw hot chocolate sales surge by 28 per cent, soup by 10 per cent and home baking by 7 per cent, while Halloween pumpkin sales nearly doubled on last September, at just under £1 million over the last four weeks.

Kantar said Tesco gained its largest annual share since December 2017 to take 28 per cent of the market, up from 27.4 per cent a year ago.

Ocado was the fastest-growing grocer for the eighth month running, with sales up 10 per cent over the latest 12 weeks.

Spending through Lidl’s tills climbed by 8.8 per cent, with the discounter adding 0.5 percentage points to take 8.1 per cent of the market, while sales at Aldi accounted for 9.8 per cent of spending across the grocers.

Separate figures from Barclaycard revealed that consumer card spending increased 1.2 per cent year-on-year in September, after returning to growth in August, but remained lower than the latest inflation rate of 3.1 per cent.

Non-essential spending saw its highest growth so far this year, at 2.7 per cent, as retailers’ discounting incentivised shoppers.

Seven in 10 (70 per cent) consumers are looking for ways to get more value from their weekly shop or reduce how much they spend, up from 66 per cent in August, and higher than the 67 per cent 2024 average.

Of those seeking savings, half (47 per cent) are looking out for loyalty scheme discounts and deals, while 46 per cent are using vouchers or loyalty points to get money off their shopping. Two-fifths (39%) of consumers say they are trying ‘slow shopping’, by being more intentional and discerning with their purchases.

Overall retail spending rose 1.1 per cent in September compared to the same period last year despite a miserable summer. Spending on clothing increased 23.6 per cent month-on-month and 4.5 per cent year-on-year – the first rise this year and the highest since July 2022.

Spending in department stores also saw the biggest rise – 5.5 per cent – since August 2023.

Karen Johnson, Head of Retail at Barclays, said: “Retail’s recovery emerged as a bright spot in September, despite there being colder weather and darker evenings on the horizon.

“While shoppers’ remain cost-conscious, it’s clear they’re responsive to retailers’ promotional activity. Discerning shoppers are also finding room for treats and little luxuries within their budget, demonstrating that consumers are prioritising spending on things that bring them joy.

“While many are anticipating a costly Christmas, there are encouraging signs that people feel confident in their ability to manage their household finances and take control of their festive spending.”