The FDF said UK food inflation has been higher than other European countries in recent months, including France, Germany and Spain, indicating that domestic policies have played a key part.

It pointed to a higher rate of employer National Insurance and new packaging taxes weighing heavily on the sector which was echoed by Aldi UK chief executive Giles Hurley.

He urged the Government to avoid rising costs for retailers in the Autumn Budget on November 26, warning it could "find their way" into food prices.

Mr Hurley said inflationary pressures affecting shoppers were "persistent and urgent".

Looking ahead to the Budget, he said the retail industry "has been really clear that we would strongly advise that any policies and measures that are adopted don't add costs to business operations because of the risk that they can find their way through to the food sector".

Mr Hurley added the "ripple effect" could affect consumer confidence.

He said Aldi is "more popular than ever", with shoppers increasingly switching to make it their regular supermarket as they seek lower prices.

Aldi is Britain's cheapest supermarket, having regained the top spot from Lidl in August, according to monthly analysis of the UK's eight biggest supermarkets by Which?.

It reported total sales of £18.1 billion in the UK and Ireland over 2024, up from £17.9 billion in 2023, after opening a swathe of new stores during the year.

However, operating profits fell by about a fifth to £435.5 million from £552.9 million the year earlier.

It said this was largely because of its spending on lowering prices for customers, investing in shops and raising pay for staff.

Aldi has announced a further £1.6 billion of investment to accelerate its UK supermarket expansion - with 80 openings in the pipeline over the next two years.

Food inflation tipped to soar as Aldi chief sends warning to Rachel Reeves