Shoppers are now paying an average of £571 extra each year for their food shops.
Grocery price inflation hit 12.4% during the past month, up from last month’s previous record of 11.6%, research firm Kantar reported. The latest figure means that the average annual grocery bill will increase from £4,610 to £5,181.
Categories like milk, butter and dog food are rising particularly quickly, at 31%, 25% and 29% respectively, meaning shoppers who don't change their buying habits will be hit with higher food bills. Aldi, known for its lower prices, has become the fourth biggest supermarket in the UK for the first time as people try to cut costs.
READ MORE: Aldi, Tesco and Sainsbury's shoppers in bits after seeing 'unjustifiable' price of own-brand butter
Fellow discounter Lidl has also seen a rise in sales, with both supermarkets seeing a rise in market share since September 4. Additionally, sales of the very cheapest own-label value products are up by 33% on a year ago, with almost one in four baskets containing one of these lines.
Fraser McKevitt, head of retail and consumer insight at Kantar, 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. In what is a fiercely competitive sector, supermarkets are reacting to make sure they’re seen to acknowledge the challenges consumers are facing and offer best value, in particular by expanding their own-label ranges.”
He added: “Back at the start of the 2010s, Tesco, Sainsbury’s, Asda and Morrisons together accounted for over three-quarters of the sector but that traditional big four is no more. The discounters have seen dramatic sales increases in recent months, bringing more and more customers through their doors. Aldi has done well to expand its shopper base, supported by consistent store openings, and with 14.2 million consumers visiting the grocer in the past three months.
“Meanwhile, for the fourth month in a row Lidl was the fastest-growing grocer and recorded its strongest sales performance since October 2014.”
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