Morrisons gains ground on Tesco

The pair both added 0.2 percentage points to their share of the grocery market in the 12 weeks to August 8 against a year earlier - with Morrisons claiming 11.6% and Sainsbury's 16.1% - according to Kantar Worldpanel data.

Their performance contrasted with the UK's biggest grocer Tesco and number two Asda, which both grew at a slower rate than the 4.5% advance seen by the wider market over the year.

Tesco's share shrank from 31% to 30.8% as a result, while Wal-Mart owned Asda's slice contracted from 17.2% to 16.9%, the figures showed.

Kantar Worldpanel spokesman Edward Garner said Bradford-based Morrisons - the UK's fourth biggest grocer - was the stand-out performer.

He said: "Despite some commentators expecting the Morrisons growth to run out of steam, it still comfortably leads the top four in terms of year-on-year performance."

There were also signs of a recovery from independent grocers helped by the football tournament. After years of pressure from the bigger chains, till rolls were up 8.4% over a year earlier, with market share expanding from 2.2% to 2.3%.

According to the industry body's measure food inflation rose for the third month a row, reaching 2.2% for the 12 weeks to August 8.

But Kantar put this down to the end of World Cup promotions and the contrast with price falls a year ago, rather than the recent surge in commodity prices caused by drought in Russia.

Pressure on food inflation is likely to rise in the months ahead however as manufacturers pass on wheat price hikes. Official figures released today showed food prices rising at an annual rate of 3% - the fastest pace for a year.