The boss of discount grocer Aldi has accused its rivals of driving growth by raising food prices, as the supermarket committed to fending off “persistent” price inflation.

Giles Hurley, chief executive of the UK’s fourth-biggest supermarket, hit out at the grocer’s competitors, insisting that Aldi is the only operator whose prices have fallen year-on-year. 

He said other “more expensive supermarkets” are pushing up prices to grow their takings: “One of the drivers of their growth is the fact that their retail prices are going up, and some of them are seeing volume decline at the same time. 

“We are driving prices down, and we’re growing our volumes, and that is hugely important in continuing to reinforce our confidence around growing our business and expanding.”

Hurley’s comments risk reviving the “price gouging” row that had engulfed the market earlier this year when then-Chancellor Rachel Reeves asked grocers to cap prices to prevent them profiteering from the Iran war.

Last month, Hurley backed the government’s crackdown on so-called “rip off” discounting, accusing retail rivals of using misleading promotions to trick shoppers.

He warned on Monday that the cost of food is “one of the biggest pressures on households” as he reiterated his critiques of rival grocers.

“At a time when there is persistent inflation and customers are feeling the pinch as groceries become a bigger proportion of household budgets, giving them that certainty and that clarity is as important as ever,” Hurley said. 

He said that Aldi opposes the loyalty-based promotions used by its rivals, like Sainsbury’s and Tesco, because they do not prioritise “transparency around price”.

“When promotions start with unrealistically high prices and come down to prices which aren’t that competitive, we would view that as loyalty that isn’t supportive, isn’t transparent, and doesn’t help customers plan and budget,” he added.

Hurley also said the government has a responsibility to help supermarkets protect shoppers from “persistent” cost inflation.

Healey ‘must avoid fuelling inflation’

He said the Chancellor must “actively avoid any policies or regulation which inadvertently drives costs back into the food system” at next month’s Budget. 

The Aldi boss said the food industry demands that the government delivers “very clear and stable policy which builds trust and confidence in the food sector and encourages investment.

“And that investment can grow our capacity and ensure that we continue to have a level of self-sufficiency, which protects us from external factors.”

Hurley said an “unprecedented” summer of droughts and heatwaves – combined with the supply chain costs caused by the Iran war – has left the UK “exposed not just to weather, but also to other geopolitical factors that are well outside the country’s control”.

Food inflation is tipped to surge above six per cent by next summer, as ministers warn that households should stockpile to guard against the risks of a “super” El-Nino weather pattern.

In 2025, Aldi grew its turnover by five per cent to a record £19bn, while its gross margin slimmed by 0.1 per cent and its underlying profit stayed broadly flat at £433m.

On Monday, the grocer set out plans to invest £900m into opening 40 more sites next year. The grocer currently has 1,092 supermarkets in the UK and hopes to reach 1,500.