The UK boss of Aldi, Giles Hurley, warned that upcoming government measures could increase business costs, leading to higher food prices for consumers.

Hurley urged the UK government to avoid raising costs for retailers in the upcoming autumn Budget, as these costs are likely to be passed onto shoppers.

He emphasized that policies such as NICs increases and new packaging taxes have already contributed to rising prices on supermarket shelves.

Industry leaders are calling for government support to attract investment, improve productivity, and boost skills to help counter inflation and build resilience in the UK food sector.

Despite a slight increase in annual sales to £18.1 billion, Aldi's profits fell over 20% to £435.5 million in 2024 due to investments in price cuts, infrastructure, and higher wages.

In 2025, Aldi invested over £300 million to offset rising costs and maintain low prices, though staple food prices like beef mince have increased significantly.

UK food inflation reached 4.9% in July and could hit 5.7% by the end of 2025, driven by domestic policies and rising commodity prices.

Food and non-alcoholic drink prices in the UK have increased by 37% since January 2020, with products like sugar, milk, and cheese experiencing steep rises.

Over 60 retailers have urged the UK Chancellor to avoid additional taxes that could further impact the industry and fuel inflation.

Hurley highlighted that recent cost increases, including NICs and packaging taxes, have directly contributed to worsening food inflation, prompting shoppers to seek lower prices.

Hurley emphasized that inflationary pressures are persistent and urgent, affecting consumer confidence and shopping habits.

Aldi plans to invest £1.6 billion over the next two years to open 80 new stores, expanding its UK presence from 1,060 to potentially 1,500 locations.