A UK supermarket has come under fire for a 5.8 per cent price hike for customers in April this year.
Iceland increased prices by the hefty margin in the four weeks to April 19, according to Worldpanel figures seen by The Telegraph.
While Iceland disputed the Worldpanel figures, stating it did not fairly reflect its pricing, the rise was almost double the official rate of food and drink inflation.
The official figure stood at 3 per cent in April, according to the Office for National Statistics. That 5.8% increase was the second-highest inflation rate among UK supermarkets and above the sector average of 3.8 per cent for the period.
The supermarket has stated that the most recent published Worldpanel data for May showed its grocery inflation was below the wider market at 2.6 per cent, according to the Grocery Gazzette.
The retailer also unveiled a range of recent price cuts with more than 200 frozen products to be discounted or added to deals from Tuesday.
Iceland chairman Lord Walker of Broxton was appointed by Labour earlier this year to help tackle rising household bills.
Lord Walker said the April figures were based on “flawed methodology” and were distorted by specific lamb promotions from the previous year.
He said: “This is flawed methodology, based on a small panel questionnaire, over a few weeks in April, a moment in time when Iceland had some very specific lamb deals in place last year, which distorts the comparison.
“It also does not take into account new products and deals in place this year.
“We tirelessly track prices, investing where customers need it most, to ensure our prices are consistently lower than the market. Families are still under real pressure, which is why we are putting more money into deals, lower prices and value across frozen food and everyday favourites.”
A spokesman for Iceland added that its own pricing data showed the retailer remained “highly competitive” on the products and ranges most important to shoppers.
“We are continuing to invest in deals, lower prices and value across the foods families rely on,” the spokesman said.
“Customers are still under real pressure from food costs, so our priority is simple, helping them get more from every shop.”