A recent study has identified the UK supermarket experiencing the most significant price hikes. Consumer watchdog Which? conducted an analysis of 20 commonly bought food and beverage categories at eight major retailers: Aldi, Asda, Lidl, Morrisons, Ocado, Sainsbury’s, Tesco, and Waitrose.
The study compared prices over identical three-month and one-month periods on a year-on-year basis, considering discounts but excluding multibuy deals and loyalty scheme promotions. Overall, the annual inflation for supermarket food and drink monitored by Which? started decreasing earlier this year, dropping to 4.1% in the three months ending February. This marked a decrease from 4.7% in December, 5.4% in August, and 4.6% in May, significantly lower than the peak of 17% in the three months to April 2023.
However, this data does not account for the recent Middle East crisis outbreak, with experts warning of a potential surge in food prices. Inflation measures the rate at which prices are increasing or decreasing, indicating that supermarkets with higher inflation rates may still offer better value compared to their competitors.
Based on the latest figures from Which?, Waitrose saw the most rapid price growth, with inflation rates of 5.3% in the three months up to February and 4.7% in February alone. Following Waitrose, Lidl had the second-highest inflation at 4.3%, with Tesco close behind at 4.3% in February and 4.2% over the three-month period.
Looking solely at February, Sainsbury’s had an inflation rate of 4%, Morrisons at 3.9%, Asda at 3.5%, and Ocado at 3.2%. The supermarket with the lowest inflation rate was Aldi, where average prices rose by 2.9% in February. However, this marked a significant slowdown for Aldi, as its inflation was at 3.7% in the three months leading up to February.
Which? analysts pointed out various factors contributing to food price inflation, such as increased costs for fertilizers and fuel impacting product prices. Ongoing pandemic disruptions and adverse weather conditions, particularly in cocoa-producing regions like West Africa, were also highlighted. Experts cautioned that conflicts in Iran could further drive up prices of essential supermarket items like cereal, bread, and pasta.
While Waitrose topped the inflation rate in the Which? study, it may not necessarily be the priciest supermarket overall. Another investigation by the same consumer organization revealed that buying branded products in Waitrose was actually cheaper compared to identical shopping at Tesco and Sainsbury’s without utilizing a Clubcard or Nectar Card.