UK's cheapest supermarket revealed as food inflation rises for the fourth month in a row

The British Retail Consortium (BRC) said overall shop prices were down slightly year-on-year, by just 0.1 per cent, but that’s no comfort to shoppers facing higher bills at the checkout.

According to the BRC-NIQ Shop Price Index, fresh food is now 2.4 per cent more expensive than it was last May, up from 1.8 per cent in April.

Overall food inflation hit 2.8 per cent, with ambient food inflation (including items like pasta and tins) still high at 3.3 per cent

Rising costs are being passed on in some areas as businesses face growing pressure. This includes the £5 billion cost of higher employer national insurance and wage increases introduced in April, with another £2 billion in packaging taxes set to hit retailers later this year.

According to BRC chief executive Helen Dickinson, this mix of rising business costs and global supply issues means households could see prices climb further in the months ahead.

Dickinson warned: "If statutory costs continue to rise for retailers, households will have to brace themselves for more difficult times ahead as prices rise faster.”

Amid this pressure, Which? has published its latest supermarket price comparison, analysing the cost of a basket of 79 branded and unbranded groceries across eight major UK chains.

For the 18th month in a row, Aldi has come out on top as the UK’s cheapest supermarket.

The average cost of the same shopping basket at Aldi was £135.95 in April 2025.

This is over £48 cheaper than Waitrose, which was the most expensive at £184.19.

Lidl came in a close second, with a Plus membership basket costing £136.64, and regular prices just a penny more. Asda ranked fourth at £150.06, holding onto its spot ahead of Tesco’s Clubcard prices at £151.11.

Without a Clubcard, Tesco’s basket totalled £152.59, just behind Sainsbury’s Nectar prices at £152.57. Morrisons came last in the comparison, with its More loyalty prices totalling £157.15.

Aldi’s Chief Commercial Officer, Julie Ashfield, said: "The Which? analysis once again reiterates our message that if shoppers want to save money on groceries, then Aldi is the only place to shop."

She added that Aldi is “proud to continue our winning streak” by offering consistently low prices without compromising on quality.

As inflation shows signs of picking back up and household budgets remain tight, shopping around — or switching supermarkets altogether — could be one of the easiest ways to make meaningful savings.

Mike Watkins, head of retailer and business insight at NielsenIQ, said: “Whilst shoppers are seeing savings at the checkout as retailers increase promotional activity, increasing prices is still an extra challenge to consumer spending alongside rising household bills.

“If consumer confidence remain weak as looks likely, then retailers may have to work harder to encourage shoppers to spend over the summer.”