Aldi has overtaken Morrisons to become the fourth-largest UK supermarket for the first time, according to data from research firm Kantar.
Discounters are grabbing more market share as shoppers take steps to manage their budgets, Kantar said.
Food prices are rising quickly as energy and fuel costs soar, and the war in Ukraine squeezes grain production and pushes up fertiliser costs.
Kantar said food price inflation hit a record 12.4% in August. Inflation in the UK has been rising at its fastest rate for 40 years as food prices climb with living costs eating into household budgets.
Shoppers are taking steps to manage their budgets amid a squeeze on household income brought about by rising inflation and higher energy prices.
Kantar said Aldi’s sales rose by almost a fifth in the 12 weeks to 4 September compared with a year earlier, giving it a market share of 9.3%.
Meanwhile, Morrisons’ sales dropped by 4.1% over the same period, with its market share falling to 9.1%. Morrisons said market share was “partly a function of new store openings”.
