A recent study has identified the UK supermarket with the most significant price hikes. Consumer watchdog Which? conducted an analysis of 20 commonly purchased food and drink 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 year-on-year, taking into account discounts but excluding multibuy deals or loyalty scheme promotions. The study found that overall annual inflation for supermarket food and drink began to decrease earlier this year, reaching 4.1% in the three months ending February. This was 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 ending April 2023.
However, this data does not reflect the impact of the recent Middle East crisis, which experts believe could lead to another surge in food prices. Inflation measures the rate at which prices are rising or falling, indicating that supermarkets with the highest inflation rates may still offer better value than their competitors.
According to the latest Which? report, Waitrose experienced the most rapid price increases, with a 5.3% inflation rate in the three months to February and 4.7% in February alone. Following Waitrose, Lidl had the second-highest inflation rate at 4.3%, with Tesco close behind at 4.3% in February and 4.2% over the three-month period.
Looking at February specifically, Sainsbury’s had a 4% inflation rate, followed by Morrisons (3.9%), Asda (3.5%), and Ocado (3.2%). The supermarket with the lowest inflation rate was Aldi, where prices increased by an average of 2.9% in February, indicating a significant slowdown compared to the 3.7% inflation rate in the three months leading up to February.
Analysts from Which? pointed out several factors fueling food price inflation, such as rising costs for fertilizers and fuel, which impact the prices of various products in supermarkets. Ongoing pandemic-related disruptions and adverse weather conditions in regions like West Africa, a major cocoa producer, are also contributing to the situation. Additionally, concerns about conflict in Iran potentially driving up prices of essential supermarket items like cereal, bread, and pasta have been raised by experts.
Although Waitrose had the highest inflation rate in the study, it may not necessarily be the most expensive supermarket for shoppers. Another investigation by Which? found that purchasing branded products at Waitrose was actually cheaper than buying identical items at Tesco and Sainsbury’s without using a Clubcard or Nectar Card.