Mon, 15 Sep 2025

Mon, 15 Sep 2025 Aldi warns food prices may rise if Budget lifts costs

Giles Hurley says the chancellor must consider "very carefully" any policies that raise business costs.

* Aldi UK's boss, Giles Hurley, warns that measures in the Budget could lead to higher food prices if they increase costs on employers
* The impact of last year's National Insurance rise and new packaging rules has already increased prices for customers, according to Hurley
* The Treasury says the Budget will focus on cutting inflation and keeping a tight grip on public spending
* Over 60 retailers have written to Chancellor Rachel Reeves urging her to avoid further taxes on the industry
* Aldi reported annual sales of £18.1bn but profits dropped by more than 20% due to investments in price cuts, infrastructure and higher pay
* Hurley says that more than £300m has been spent this year trying to offset rising costs and keep prices low
* Supermarket prices for many staple products have rocketed this year, with some items increasing by over 30%
* Global factors such as commodity price rises are contributing to food inflation, but Hurley also blames domestic policy decisions
* The Food and Drink Federation predicts food inflation could reach 5.7% by the end of December and still be running at 3.1% by the end of 2026
* Aldi is pressing on with expansion plans, aiming to add another 80 shops over the next two years backed by £1.6bn of investment
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