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Cost of living: UK's cheapest supermarket revealed

Aldi has been named Britain's cheapest grocer as the cost of living surges. Photo: Tim Ireland/Xinhua via Getty
Aldi has been named Britain's cheapest grocer as the cost of living surges. Photo: Tim Ireland/Xinhua via Getty

Aldi has been crowned the cheapest supermarket in the UK as shoppers look to cut costs any way they can in the midst of the cost of living crisis.

The supermarket was named the cheapest supermarket overall for the fourth month in a row, narrowly beating rival discounter Lidl, according to Which?.

The consumer group looked at the cost of everyday items such as bread, milk, and eggs across the UK’s eight major supermarkets.

Read more: Aldi overtakes Morrisons as UK's fourth largest supermarket as food inflation soars

Its monthly cheapest supermarket price comparison assessed the cost of a basket of 48 items, including groceries and household essentials, with Aldi coming in cheapest at just £75.61 – beating Lidl by £1.84.

The trolley included a larger number of branded items, such as Andrex toilet paper and Cathedral City cheese. But, Which? excluded Aldi and Lidl from comparison for these items as they can't always be found in discounter supermarkets, it said.

Of the 'big four' supermarkets, Asda was the cheapest at £84.87, the same shopping cost £18.77 more at Morrisons and £11.76 more at Tesco (TSCO.L).

UK's cheapest supermarkets. Data: Which?
UK's cheapest supermarkets. Data: Which?

"The upcoming months remain uncertain for so many across the UK, and we want to help make this difficult time a little easier for our valued customers," Julie Ashfield, managing director of buying at Aldi said. "We are committed to providing our customers with the very best quality at prices that don’t break the bank."

Which?'s results come as Aldi overtook Morrisons in market share. according to data from Kantar. Aldi's market share reached 9.3%, the fourth largest in the UK, for the first time ever.

Watch: Aldi promises to continue to offer lowest prices despite big drop in profits

Read more: Christmas shoppers expected to spend £4.4bn less this year

Danielle Richardson, Which? money expert, said: "Our monthly price analysis shows that shoppers could save almost £25 on a typical food shop of basic items such as milk, teabags and baked beans if they opt for the cheapest supermarket so it really does pay to shop around if at all possible.

"Avoiding smaller convenience stores, opting for budget ranges and sticking to a shopping list are all ways to help you save money on your groceries.

"It can also be worth bulk buying special offers for items you'll definitely use, looking for yellow reduced stickers, and either batch cooking or freezing to avoid food waste."

Read more: FTSE 250: Greggs raises price of its sausage roll again despite strong sales

Separate figures from Kantar showed grocery price inflation was 12.4% in the four weeks to 4 September – the highest level since the market analyst started measuring it in 2008.

Fraser McKevitt, Kantar's head of retail and consumer insight, said: "It seems there’s no end in sight to grocery inflation as the rate at which food and drink prices are increasing continues to accelerate.

"Now standing at 12.4% for August, the latest figure means that the average annual grocery bill will go from £4,610 to £5,181 if consumers don’t make changes to what they buy and how they shop to cut costs. That’s an extra £571 a year.

"Categories like milk, butter and dog food are jumping up especially quickly at 31%, 25% and 29% respectively."