A new report by NIQ, the EU5 Inflation Barometer, has been published, monitoring consumer goods inflation across Europe‘s five largest grocery markets – Great Britain, France, Germany, Italy and Spain.
As the report found, FMCG inflation across the EU5 slowed to 1.1% in May 2026, its lowest level of the year, amidst a wider European slowdown.
However, inflation varied considerably across markets, with Great Britain recording FMCG inflation of 2.3%, above the EU5 average, while France saw deflation of -0.4% and Italy recorded inflation of 0.6%.
“While inflation is cooling at a regional level, the picture varies significantly by country. Great Britain remains the clear outlier, with FMCG inflation holding above 2%, while France has moved back into deflationary territory,” commented Benjamin Cawthray, client director at NielsenIQ.
Inflation gap
Cawthray added that a “growing gap” is emerging between grocery inflation and broader consumer inflation, indicating that supermarket pricing is no longer moving in line with wider economic trends.
“Shopper behaviour reflects these changing conditions,” he said. “By analysing changes in promotional purchasing, retailer and brand choice, private label engagement, category participation and purchase volumes, the Barometer uncovers the key behaviours shaping FMCG growth across EU5 markets. This provides critical context to inflation trends, revealing how consumers are adapting their spending decisions in response to changing market conditions.”
Consumer response
The report also measures department-level inflation, price elasticity and the ways consumers respond to higher grocery prices. These include changes in promotional activity, switching retailers or brands, the purchase of private label products and reducing purchase volumes.
As an example, in Great Britain, non-alcoholic beverages recorded the highest inflation during the 13-week period ending 24 May 2026, increasing 4.4% year on year. Confectionery and snacks followed at 2.8%, while frozen food rose 2.7%. By contrast, homecare products and paper products remained in deflation, declining 1.1% and 0.9% respectively.
“The findings highlight how inflation may be converging at a regional level, but shopper responses and category dynamics remain highly market specific, creating different opportunities and challenges for manufacturers and retailers across Europe,” Cawthray added. Read more here.
