Tesco, the UK’s largest supermarket chain, has increased prices of common grocery items by 16 per cent over the last twelve months, according to findings by mySupermarket.co.uk.
The revelation comes as Tesco continues to promote itself as a low cost retailer through price campaigns and claims to have reduced the costs of hundreds of products each month.
In comparison, Asda’s prices grew 8.6 per cent and Sainsbury’s by 11.8 per cent, all significantly higher than the average 2.5 per cent consumer price inflation .
Grocery comparison website MySupermarket.co.uk compared the prices of 25 staple foods from October 2006 to the same items from the same retailers a year later. The basket of food included similar own brand products, including sugar, milk and bread – all of which were large enough portions to feed a family of four.
Tesco responded to the findings, with a spokesperson arguing the study was not a fair representation of Tesco’s price positioning and claimed that Tesco was “consistently cheaper across a representative range of products”.
“It’s no secret that all supermarkets have experienced upwards pressure on food prices in the wake of the poor summer weather and rising international commodity prices,” commented the spokesman.
“However, the figures in this small and arbitrary basket are not at all representative of Tesco’s overall price position, as can be easily confirmed using our online price checker,” he added.
Last month, Tesco posted an 18 per cent rise in group pre-tax profits to £1,289 million in the first half of 2007 despite the market sector being hit by poor summer weather .
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