Aldi becomes fourth largest supermarket as grocery inflation hits 12.4%

Lidl also reports big sales increase as research shows discount stores benefiting as shoppers economise

Aldi has overtaken Morrisons to become the UK's fourth largest supermarket for the first time, as grocery inflation hit a new record of 12.4% last month.

Higher supermarket prices in August, adding 571 to the average annual grocery bill, encouraged more shoppers to closely manage their budgets, with the discount grocers benefiting, according to the market research company Kantar.