Tesco has increased the price of its cheapest beef mince by 6% since last week, following a similar move by Sainsbury's. The 500g pack now costs £3.29, which is 10% more than competitors Aldi, Lidl, Asda and Morrisons, who all sell theirs for £2.99. However, the fat content varies between 20% and 25% across retailers.
Last week, Sainsbury's was criticised for its 17% price premium on the same item. The supermarket chain attributed the rise to industry-wide factors affecting beef prices, noting that a 500g pack of 5% fat mince typically costs £4.99. Both beef and lamb production have been impacted by declining cattle numbers and rising costs for feed, energy and transportation.
The British Retail Consortium (BRC) highlighted rising wholesale beef prices as a key driver of increased food inflation, which reached 4.5% in June, particularly affecting fresh meat. BRC economist Harvir Dhillon said: "Retailers are continuing to shield shoppers from the full extent of rising costs, even as they absorb a £7 billion hit from the last Budget. Wholesale prices for beef have climbed sharply this year, driven by strong demand and tighter supply, both in the UK and globally."
In a weekly comparison of a basket of eight essential items across six major supermarkets, Aldi remained the cheapest for the sixth consecutive week at £13.09, just one penny less than Lidl's £13.10. Asda's bill dropped to £13.13 after cutting the price of its Just Essentials tea bags. Morrisons was fourth at £13.55, while Sainsbury's was the most expensive for the fourth week running at £13.90. Tesco's hike brought its total to £13.66, making it the second most expensive.
Aldi disputed the comparison, arguing that it does not account for quality differences, such as its tea bags and coffee being higher quality and its beans heavier. An Aldi spokesperson said: "Our promise to customers is that they will make significant savings every time they shop with Aldi, which is why we’ve been named Which? Cheapest Supermarket of the Year for four years running." Asda also disagreed, stating that its Just Essentials range is the largest and cheapest available alongside Aldi's. A Sainsbury's spokesperson said: "This review of a limited number of products does not reflect the fantastic value our customers will find at Sainsbury’s."
