Shoppers cash in on all-out grocery price war

Consumers are the big winners in a price war between the supermarket giants, with staple grocery items such as milk, bread and vegetables costing up to 10% less than a year ago.

Food and drink prices are rising at the lowest level since March 2012, with grocery price inflation for the 12 weeks to August 17 at 1.5%, down from 1.9% in the last period. Last year, consumers were paying an average of €1.67 per kilo of vegetables. That has now fallen to €1.52 per kilo.

David Berry, commercial director of Kantar Worldpanel, which compiles data on supermarket share, said the price war is set to continue. Lidl and Aldi now have 17% of the market, at the expense of Tesco. The data shows 65% of households shopped in Lidl stores over the past 12 weeks, 46,000 more than this time last year.