UK’s cheapest supermarket revealed

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Aldi has yet again been named the cheapest supermarket in the UK, with an average household basket full of groceries and other essentials coming in at £110.58 in August.

Lidl came a close second, with the same basket costing shoppers £112.17 for those with a Lidl plus card and £118.18 without, according to consumer group Which?. The difference between the two budget supermarkets is less than £2.

The same items cost £140.89 at Waitrose — over £30 more expensive than at Aldi.

Read more: Shoppers’ favourite products hit by ‘double-dip shrinkflation’

The basket of groceries cost £121.85 at Asda, £123.13 at Tesco (TSCO.L) with a Clubcard, £123.75 at Sainsbury’s (SBRY.L) with a Nectar card, £129.79 at Morrisons and £133.99 at Ocado (OCDO.L).

Ele Clark, Which? retail editor, said: “Given the ongoing strain of high food prices on household budgets, it’s understandable that many people are choosing discounters to cut costs. By switching supermarkets, consumers could save 22%, highlighting the advantages of shopping around.”

The list of 62 items included a number of both branded and own-brand items, such as Heinz baked beans, Hovis bread, milk, and butter. Special offers were included, but any multi-buys were not.

The figures also showed the savings possible with loyalty cards, amid controversy around them.

Tesco Clubcard members would have paid £123.13 — while without a Clubcard, the Tesco shop cost just 49 pence more at £123.62.

Using a Nectar card at Sainsbury’s would have saved shoppers £5.88 on August’s shopping list of items

Read more: How to save money when moving house

However, in a hit to UK households navigating the cost of living crisis, food inflation has risen for the first time since March last year.

Supermarket prices were 1.8% higher than a year ago over the month to 4 August, nudging up slightly from 1.6% in July, analysts Kantar said.

Grocery prices rose across 182 product categories, but fell in 89 others, according to Kantar.

Kitchen towels and baked beans were 7% and 5% cheaper respectively than last year.

Fraser McKevitt, head of retail and consumer insight at Kantar, said: “Having reached its lowest rate in almost three years in July, August saw inflation nudge up again slightly. While this is noticeable following 17 straight months of falling rates, it actually marks a return to the average levels seen in the five years before the start of the cost of living crisis.

“With this kind of pricing spread, shoppers will find that the type of product they’re putting in their baskets will really dictate how much they pay.”

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