Aldi is expected to cut more prices in the run-up to Christmas amid easing inflationary pressures, the supermarket's boss has said.

The German discounter's UK business said it has seen negative price inflation in recent months, in a sharp reversal from soaring food and drink prices witnessed by shoppers over the past two years.

It came as the grocer reported surging sales and profits for last year and unveiled plans to spend £800 million to ramp up expansion across the UK in its largest annual investment.

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The retailer, which currently has more than 1,020 stores, said it still sees more opportunity to grow its customer base, amid long-term ambitions to expand to 1,500 stores.

On Monday, Giles Hurley, chief executive of Aldi UK and Ireland, pointed towards some signs of improving customer sentiment as price inflation eases.

"Our price inflation has come down ahead of other supermarkets, and are the only one where our prices are lower than a year ago," Mr Hurley claimed.

"We know times are still challenging for customers and we are doing everything we can to support them.

"We've invested £100 million more in price reductions and I'm pretty optimistic that customers will continue to see price reductions in stores before Christmas."

The boss did however add that the retailer has seen more shoppers shift towards its premium product, saying that "consumer pressure is easing in some areas".

It came as the discount supermarket said it was opening 23 stores by the end of the year and revamping another 100 shops as part of the record investment plans.