German discounters Lidl and Aldi raised prices more sharply than other supermarkets in the UK last month as food inflation spreads to every area of grocery.
(Bloomberg) — German discounters Lidl and Aldi raised prices more sharply than other supermarkets in the UK last month as food inflation spreads to every area of grocery.
Shoppers at Lidl saw their bills rise by 21.1% last month versus a year earlier and Aldi was close behind with a 20.8% increase, according to a report from Which, a consumer magazine.
Still, as food inflation in the UK hit a record in December, Lidl and Aldi are still the cheapest supermarkets as they win shoppers from pricier rivals, the study found.
Asda had the third-highest inflation figure and the biggest individual price rise with Quaker Oats apple-flavored instant oatmeal almost tripling to £2.88 ($3.53), according to Which. The supermarket disputes the example, saying it wasn’t selling the product in the prior-year period. Which said it’s standing by its research.
“We’re working hard to keep prices in check for customers and remain the lowest-priced major supermarket,” an Asda spokesperson said.
Another brand that marked a big price rise over the past year is Utterly Butterly, which jumped from £1 to £1.95 at Waitrose.
Consumers’ trust in supermarkets is dwindling as prices grow, according to Which. Grocers “could be doing a lot more to help thousands through the cost-of-living crisis,” the magazine said.
Tesco Plc, Aldi, Lidl and Ocado all set record sales in the approach to Christmas as inflation raised the value of shoppers’ baskets. Still, volumes have fallen and supermarkets are warning that margins will continue to be squeezed in 2023.
Even though a broad measure of UK inflation dipped for a second month in December, food costs accelerated at the quickest pace since records started in 1989.
(Updates with Asda and Which comments in fourth paragraph, inflation figures.)
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