Asda named cheapest supermarket in UK despite rising prices
Asda was crowned UK’s cheapest supermarket despite recent price hikes.
The supermarket was named the cheapest supermarket overall, based on the costs of items in the Consumer Price Index (CPI) “basket” items from the Office for National Statistics in May.
British grocery store Sainsbury’s (SBRY.L) moved up three places from the previous month and took second place, ahead of Tesco (TSCO.L), Iceland and Morrisons (MRW.L).
An Asda basket cost an average of £ 110.02 ($ 156), compared to £ 113.68 for Sainsbury’s. A Tesco basket, ranked third, costs £ 114.75, while Iceland (4th) rose from £ 1.14 from April to £ 117.01.
Most supermarket basket totals have fallen in price, according to data from the price-tracking website Alertr, which analyzes prices at seven of the largest supermarkets.
Andy Barr, co-founder of Alertr, said Asda retained its place as the cheapest option for UK consumers “despite a huge price hike” from April.
“It’s interesting that Sainsbury’s is now second after coming fifth last month,” added Barr. “Over the past few months they’ve been on the more expensive side of the table, but recent price drops have now pushed them up to second among the cheapest.”
The results are determined by tracking how each online retailer prices the 42 items described in the government’s Consumer Price Index “shopping cart” on a weekly basis.
Meanwhile, Waitrose and Ocado (OCDO.L) were named the most expensive grocery stores, with a basket of £ 22.26 and £ 14.05, respectively, more expensive than Asda’s.
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The list includes items such as eggs, milk, and bread, as well as non-perishable items like pasta, rice, and grains.
Here’s how much each supermarket’s average basket cost in May compared to April 2021:
1.ASDA – £ 110.02 (+ £ 6.28 more than last month)
2. Sainsbury’s – £ 113.68 (- £ 2.38 less than last month)
3. Tesco – £ 114.75 (-63p less than last month)
4. Iceland – £ 117.01 (+ £ 1.14 more than last month)
5. Morrisons – £ 117.06 (- £ 1.07 less than last month)
6. Ocado – £ 124.07 (- £ 3.63 less than last month)
7. Waitrose – £ 132.28 (+ £ 4.74 more than last month)
Consumer spending rose 7.6% in May compared to the same period in 2019 – the highest growth recorded since the coronavirus restrictions began – as the further lifting of lockdown restrictions encouraged more Britons shopping and socializing.
Spending on essential items was bolstered by shopping at supermarkets (17.7%) and face-to-face spending at local food and beverage retailers (69.3%), such as butchers and independent convenience stores, according to data from Barclaycard.
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