Grocery prices in December were the cheapest in over a year as supermarkets competed for shoppers during the Christmas period.
Research carried out by shopping and comparison website mySupermarket.co.uk found that the cost of a basket of 35 popular products cost £85.91 in December, one per cent cheaper compared to just a month earlier.
When compared to December 2014, the difference was five per cent, or a saving of £4.33. This represents an annual family saving of £225 on their weekly shop.
MySupermarket’s Groceries Tracker monitors the cost of the same 35 most commonly bought grocery products.
The products that dropped the most from November to December were pasta, down 5 per cent, onions, down 7 per cent, and mushrooms, down 18 per cent.
The price drop coincides with the announcement in November that Aldi and Lidl now control 10 per cent of British grocery sales – double their share three years ago.
Kim Ludlow, MD of mySupermarket, said: "It is great to see the cost of grocery staples come down further in price and shoppers across the UK will be delighted that they can make real savings this January.
"The fall is part of a wider trend that we have observed here at mySupermarket, and is partly due to the intense competition between supermarkets with discounters such as Aldi and Lidl increasing their market share over recent months.
"The average saving made by a mySupermarket shopper is 30 per cent, so there are definitely more savings to be had if people are willing to compare prices before they complete their shop."