Lidl and Aldi hiked prices the most among supermarkets in UK

Shoppers at Lidl saw their bills rise by 21% last month versus a year earlier and Aldi was close behind with a 20.8% increase, according to a report from Which, a consumer magazine. Picture: Leah Farrell/ RollingNews.ie

German discounters Lidl and Aldi raised prices more sharply than other supermarkets in the UK last month, as food inflation spreads to every area of grocery.

Shoppers at Lidl saw their bills rise by 21% last month versus a year earlier and Aldi was close behind with a 20.8% increase, according to a report from Which, a consumer magazine.

Lidl and Aldi are still the cheapest supermarkets, as food inflation in the UK hit a record in December, as they win shoppers from pricier rivals, the study found.

Aldi told the Irish Examiner before Christmas that the retailer may be forced to put up its prices to absorb the huge rise in costs.

“Our priority is to insulate, as far as we can, the customer from what’s coming,” said Niall O’Connor, group managing director at Aldi Ireland, in October last year.

“It would be ridiculous for me to sit here and say that our prices aren’t going up. Of course they’re going up.” 

He said any price increases would only come as a last resort.

The retailer employs about 4,650 people and operates over 150 stores in Ireland, with more store openings planned for 2023.

Tesco, Aldi, Lidl and Ocado all set record sales in the approach to Christmas as inflation raised the value of shoppers’ baskets. However, volumes have fallen and supermarkets are warning margins will continue to be squeezed in 2023.

Even though a broad measure of UK inflation dipped for a second month in December, food costs accelerated at the quickest pace since records started in 1989.

• Additional reporting by the Irish Examiner