Iceland has announced a major overhaul to its 1,000 stores this summer after reports it raised prices faster than its other supermarket rivals.
The frozen food chain has rolled out a slew of discounts attached to more than 200 products, which come into effect from today (June 2).
However, this comes after new data revealed the supermarket increased its prices by 5.8 per cent during April, positioning it as the retailer with the second-highest inflation rate among UK grocery chains.
Based on Worldpanel figures, these numbers significantly exceeded the industry average of 3.8 per cent recorded over the four weeks ending April 19.
Iceland has cut prices after reports it was raising the cost of items faster than supermarket rivals
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The frozen food specialist’s price rises were also nearly twice the official food and drink inflation rate of 3 per cent reported by the Office for National Statistics for the same month.
Analysts note this data presents a potentially uncomfortable situation for Lord Walker of Broxton, who chairs the supermarket chain and serves as the Labour Government’s cost of living tsar.
The supermarket chairman has previously cautioned petrol retailers against exploiting consumers by hiking prices following the Iran war, which caused oil prices to surge. In the past, Lord Walker has urged fuel sellers not to “rip off households”.
Responding to the figures, he dismissed the data as unreliable, stating: “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.”
Has your Iceland supermarket shop got more expensive?
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X / Richard Walker / IcelandAverage retail petrol prices for supermarket, non-supermarket and motorway pumps (March to May 2026) | CMA
He added that the analysis failed to account for new products and promotional offers introduced this year.
The Iceland chairman insisted the company continuously monitors pricing and invests where shoppers need support most, ensuring prices remain consistently below market rates.
“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,” Lord Walker said.
Iceland moved to address concerns by announcing reductions on more than 200 frozen products, with discounts and new deals taking effect from Tuesday.
The Iceland chairman is currently the Government’s cost of living tsar
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Iceland moved to address concerns by announcing reductions on more than 200 frozen products.
The company also pointed to more recent Worldpanel data for May, which showed its grocery inflation had dropped to 2.6 per cent, placing it below the broader market rate.
An Iceland spokesman for the retailer said: “Our own pricing data shows Iceland remains highly competitive on the products and ranges that matter most to our customers.”
The supermarket emphasised that helping families manage food costs remains its central priority, with continued investment in value across everyday essentials.