A recent study has identified the UK supermarket experiencing the steepest price hikes. Consumer watchdog Which? conducted an analysis of 20 commonly purchased food and drink categories across eight major retailers, including Aldi, Asda, Lidl, Morrisons, Ocado, Sainsbury’s, Tesco, and Waitrose.
The investigation compared prices over identical three-month and one-month periods year-on-year, considering discounts but excluding multibuy deals or loyalty scheme promotions. Overall, the annual inflation for supermarket food and drink showed a decline at the beginning of this year, dropping to 4.1% in the three months ending February from 4.7% in December. This decrease was notable compared to the peak of 17% recorded in the three months leading to April 2023.
However, this data does not reflect the impact of the Middle East crisis outbreak, with experts warning of a potential surge in food costs. Inflation measures the rate of price increase or decrease, indicating that supermarkets with higher inflation rates might still offer better value than their competitors.
According to the latest figures from Which?, Waitrose experienced the fastest price growth at 5.3% in the three months up to February and 4.7% in February alone. Following Waitrose, Lidl had the second-highest inflation rate at 4.3%, while Tesco recorded 4.3% in February and 4.2% over the three months leading to that date.
In terms of February prices, Sainsbury’s had a 4% increase, Morrisons 3.9%, Asda 3.5%, and Ocado 3.2%. Aldi had the lowest inflation rate among the supermarkets, with average prices rising by 2.9% in February, showing a significant slowdown compared to the 3.7% inflation rate in the three months leading to February.
Which? analysts highlighted various factors contributing to food price inflation, including rising costs of fertiliser and fuel impacting product prices on shelves. Additionally, ongoing pandemic disruptions and adverse weather conditions in regions like West Africa, a major cocoa producer, are influencing prices. Specialists also warn that conflicts in Iran could lead to higher prices for supermarket staples like cereal, bread, and pasta.
Although Waitrose had the highest inflation rate in the study, it may not necessarily be the most expensive supermarket for shopping. Another investigation by the same consumer organization found that purchasing branded products in Waitrose was actually cheaper than buying identical items in Tesco and Sainsbury’s without using loyalty cards.
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