The price of food in the UK fell sharply in January. The rate of decline was the deepest in at least eight years.
Meat, milk, vegetables and eggs were less expensive in January this year than they had been at the same time in 2014, according to the British Retail Consortium.
Cereals and bread prices also tumbled lower, in part due to good harvests pushing down grain prices.
The cheaper prices were also driven by the on-going price war among the major supermarkets and the lower price of oil.
Oil has gone from $115 a barrel last summer to $56 today.
Aldi, meanwhile, announced that it is planning to open 70 more stores in the UK in addition to the 560 existing ones. The move is viewed as part of its continued challenge to the “Big Four” supermarket giants.
Both Aldi and Lidl have been gaining market share at the expense of the traditional retailers. The economic pinch helped reduce any stigma attached to shopping there.
Aldi holds 4.8% of the grocery market, a rise of 20% over last year, while Lidl has achieved 3.5%, an increase of 3%.
Aldi’s expansion means it will recruit nearly 5,000 full and part-time staff. It will remunerate the managers with salaries starting at £35,800 and going up to £56,500. The company has been rated as one of the UK’s top graduate employers.
