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UK's cheapest supermarket revealed

    Aldi has once again been named the cheapest supermarket in the UK, with an average household basket of groceries and other essentials costing £110.58 in August.

    Lidl came a close second, with the same basket costing shoppers £112.17 for those with a Lidl Plus card and £118.18 without, according to consumer group Which?. The difference between the two budget supermarkets is less than £2.

    The same items cost £140.89 at Waitrose, over £30 more than at Aldi.

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    The shopping basket cost £121.85 at Asda, £123.13 at Tesco (TSCO.L) with a Clubcard, £123.75 at Sainsbury's (SBRY.L) with a Nectar card, £129.79 at Morrisons and £133.99 at Ocado (OCDO.L).

    Ele Clark, Which? retail editor, said: “With the continued pressure of high food prices on household budgets, it's understandable that many people are turning to discounters to cut costs. By switching supermarkets, consumers can save 22%, highlighting the benefits of shopping around.”

    The list of 62 items included a number of branded and own-brand items, such as Heinz baked beans, Hovis bread, milk and butter. Special offers were included, but multi-buys were not.

    The figures also show how much savings can be achieved with customer cards, although there has been much controversy surrounding this.

    Tesco Clubcard members paid £123.13, while the Tesco store without a Clubcard cost just 49p more, at £123.62.

    By using a Nectar card at Sainsbury's, shoppers could have saved £5.88 on their August shopping list

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    However, in a blow to British households struggling with the cost of living crisis, food inflation has risen for the first time since March last year.

    Analysts at Kantar said supermarket prices were 1.8% higher than a year ago in the month to August 4, up slightly from 1.6% in July.

    According to Kantar, food prices rose in 182 product categories, but fell in 89 others.

    Kitchen paper and baked beans were 7% and 5% cheaper than last year respectively.

    Fraser McKevitt, head of retail and consumer insight at Kantar, said: “After hitting its lowest level in almost three years in July, August saw inflation rise slightly again. While this is noticeable after 17 months of falling rates, it effectively marks a return to the average levels seen in the five years before the cost of living crisis began.

    “With these kinds of price differences, shoppers will find that the type of product they put in their cart really determines how much they pay.”

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