Aldi has narrowly beaten rival Lidl to be named by Which? as the UK’s cheapest supermarket of the year.

But the consumer organisation said that overall, grocery costs are going up, even at discount stores. Its research found that supermarkets charged up to nine per cent more in December than they did in January 2021.

Aldi was the least expensive supermarket for six of the 12 months, while Lidl – which won in 2020 –was the cheapest for five, including December.

For one month, January 2021, Aldi and Lidl were tied with a basket of 19 items coming in at £18.45 at both discounters.

“No one wants to overpay for basic groceries, especially when a cost of living crunch is putting extra pressure on household budgets,” said Ele Clark, Which? retail editor. “Our findings show that while prices are going up, some supermarkets are passing their rising costs onto shoppers more than others.

“As well as choosing a supermarket that is cheap overall, other ways to save include swapping from branded to own-brand products, sticking to a shopping list and resisting the temptation to pick up special offers you don’t need.”

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