Grocery price inflation rose in September, with average supermarket prices now 2% more expensive than a year ago, figures show.
Prices are rising fastest in markets such as chilled soft drinks, chocolate confectionery and skin care, according to data from analysts Kantar.
The unusually wet weather in September saw hot chocolate sales surge by 28%, soup by 10% and home baking by 7%, while Halloween pumpkin sales nearly doubled on last September, at just under £1m over the last four weeks.
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However, despite the overall increase in prices, researchers said supermarkets had cut back on the cost of some essentials amid a battle to win over customers.
The report found that toilet and kitchen roll were 6% lower in September year-on-year, while dog and cat food were 4% and 3% cheaper respectively.
Kantar’s Fraser McKevitt 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.”
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It comes after the rate of grocery inflation slowed to 1.7% in August.
The report also found that Tesco achieved its biggest market share since December 2017. The supermarket chain now takes up 28% of the market, up from 27.4% a year ago.
The market share of Sainsbury’s increased by 0.4 percentage points to 15.2%.
It comes as separate figures on Tuesday suggested retail sales rose by 2% year-on-year in September.
The industry figures, from the British Retail Consortium (BRC) and KPMG, are the strongest for the sector in six months.
BRC chief executive Helen Dickinson said: “As autumn rolled out across the UK, shoppers sought to update their wardrobes with coats, boots and knitwear.
“The start of the month also saw a last-minute rush for computers and clothing for the new academic year.”
However, she said businesses were “holding their breath” ahead of the government’s upcoming budget and were hoping for extra support.
She added: “The coming months are crucial for the economy as retailers enter the ‘Golden Quarter’. But in the face of weak consumer confidence and the continued high burden of business rates, retailers’ capacity for further investment is limited.”
