Thousands of Aldi workers are set to get their second pay rise since the start of the year as inflation continues to surge.

The German supermarket, which runs 970 UK stores, said store assistants will see with their minimum pay increase to £10.50 an hour, and £11.95 for those in Greater London.

It said the pay hike will support 26,000 store workers and take the firm’s pay investment to £43 million over the past year.

The move comes only five months after the group’s UK minimum pay increased to £10.10 from £9.55, while it rose to £11.55 from £11.07 within the M25.

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The latest pay increase comes after inflation leapt by 9.4% in June, according to the Office for National Statistics (ONS).

However, statisticians said pay lagged behind inflation at a record rate over the past three months, as pay increased by 4.3% in June.

Many firms have handed workers improved pay deals in recent months amid a particularly tight labour market, which has resulted in staff shortages in some sectors and record vacancy numbers.

Rivals including Tesco, Sainsbury’s, Asda and Morrisons have all increased staff pay.

Giles Hurley, chief executive officer of Aldi UK and Ireland, said: “Our new rates of pay maintain Aldi’s position as the UK’s highest paying supermarket.

“This announcement recognises the amazing contribution our colleagues make in serving local communities across the country.

“Their outstanding efforts have ensured that our customers continue to have access to fresh affordable food, every single day.”