Aldi loses crown for being UK's cheapest supermarket - for first time in nearly two years

Rival Lidl has taken the crown following a price analysis by consumer group Which? that looked at an average basket of 76 grocery shopping products across July, including both popular brands and own-brands.

Lidl edged out its discount rival by less than £1 overall – or slightly more if loyalty cards were used.

Lidl’s total price was £128 with the loyalty card and £128.40 without, while Aldi came in at £129.25.

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Both those supermarkets worked out to be around £17 cheaper than Tesco and £40 cheaper than Waitrose, which was the most expensive at £170.91 overall.

The analysis comes amid a time when food inflation is rising and the cost of living continues to impact households daily, which has led to supermarkets continuing their price war to attract customers.

Customers have also had to think of where is best for them to shop. Analysis last year showed more than a third changed their regular supermarket (37%) while almost half (45%) cut down on treats and luxuries when shopping.

A key finding from the analysis was also that consumers would “pay a lot more if you stock up at Morrisons, Sainsbury's or Tesco without a loyalty card”.

Reena Sewraz, retail editor at Which?, said: "Households are still contending with high food prices but our analysis shows it pays to shop around. Simply choosing one supermarket over another could save you 25 per cent."