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Sainsbury's follows Tesco in cutting milk prices Aldi and Lidl follow rivals in cutting milk prices
(about 20 hours later)
Sainsbury's has followed its rival Tesco in cutting the price of its milk. Aldi and Lidl have joined rival supermarkets Sainsbury's and Tesco in cutting the price of milk by at least 5p.
The supermarket said it was reducing the price of its four-pint own brand bottle to £1.55 on Thursday, after Tesco did the same on Wednesday. The retailers are reducing the price of their four-pint own brand bottles to £1.55, matching other grocers.
Unlike Tesco, who said it made the move because its costs for buying in milk had fallen, Sainsbury's did not give a reason for its decision. The German discounters regularly battle with Britain's biggest supermarkets on food prices.
Both supermarkets regularly battle on food prices and face stiff competition from discounters Aldi and Lidl. All four supermarkets have confirmed the reductions in price will not affect how much they pay farmers.
The move from Sainsbury's and Tesco comes at a time when food inflation is at its highest level since 1978 and latest figures show that food prices increased 18.2% from February 2022 to February this year. Tesco said it made the decision because its costs for buying in milk had fallen.
The move comes at a time when food inflation is at its highest level since 1978. The latest official data shows that food prices increased by 18.2% in the year to February.
Milk alone has risen by 43% in price over the same period, one of many staples, including cheese and eggs, which have surged in cost and squeezed household budgets.Milk alone has risen by 43% in price over the same period, one of many staples, including cheese and eggs, which have surged in cost and squeezed household budgets.
Tesco cuts milk prices after wholesale costs fall How milk prices will change:
Why are prices rising so much? One pint: from 95p to 90p
But some analysts have suggested that supermarkets reducing their prices is a possible sign that hikes in the cost of a weekly shop could be starting to ease. Two pints: from £1.30 to £1.25
As well as the four-pint bottles, Sainsbury's has match Tesco's move in cutting two pints by 5p to £1.25 and a single pint to 90p. Four pints: from £1.65 to £1.55
Some analysts have suggested that supermarkets reducing their prices is a possible sign that hikes in the cost of a weekly shop could be starting to ease.
Arla, the UK's largest dairy producer, said that the price of milk was already expected to fall by around 5.3p per litre from April because of rising supplies and falling demand from cost-conscious shoppers.
Arthur Fearnall, a farmer and board director at Arla Foods, said: "While some prices for dairy categories are seeing early signs of levelling out, the severity of the on-going cost of living crisis and volatile economic environment is continuing to negatively impact consumer demand for both conventional and organic milk."
Paul Savage, agriculture director at Arla, said milk supplies in the UK rose by 3.2% in March compared to the same month last year. "When coupled with a decline in dairy consumption and an overall decline in shopping spending, with 75% of people cutting expenditure on food, this is creating a change in the supply and demand of milk," he said.
Sainsbury's said with "costs going up, we are working hard to keep prices low, especially on the everyday essentials people buy the most".Sainsbury's said with "costs going up, we are working hard to keep prices low, especially on the everyday essentials people buy the most".
A spokesperson added: "Our customers can be confident that they will receive great deals when they shop with us and do not need to go anywhere else to get the best prices on their weekly shop."
Both supermarkets said the reductions in price will not affect how much they pay farmers.
Meanwhile, Asda has announced a shake-up to its reduced items on sale.Meanwhile, Asda has announced a shake-up to its reduced items on sale.
Following a trial in 140 stores, Asda said it would now have price cuts on products twice a day, rather than three times previously, but that the markdowns would be greater than before.Following a trial in 140 stores, Asda said it would now have price cuts on products twice a day, rather than three times previously, but that the markdowns would be greater than before.
Recent research revealed nine out of 10 shoppers reported feeling concerned about rising food prices, according to Barclays.Recent research revealed nine out of 10 shoppers reported feeling concerned about rising food prices, according to Barclays.
Around 62% said they were finding ways to reduce the cost of their weekly shop, a report showed.Around 62% said they were finding ways to reduce the cost of their weekly shop, a report showed.
On Thursday, Tesco announced its full-year results and admitted that customers had faced "an incredibly tough year" with prices soaring.
Tesco's chief executive Ken Murphy said that he expected prices to keep rising throughout the first half of this year but they would then "moderate".
Tesco said that while its full-year sales had risen by 7% to £66bn, pre-tax profits dropped 51% to £1bn. It said it had faced "unprecedented" rises in prices charged by its suppliers.
Separately, Sainsbury's has announced a major restructuring of how its logistics operations work, affecting around 7,000 staff throughout the country.Separately, Sainsbury's has announced a major restructuring of how its logistics operations work, affecting around 7,000 staff throughout the country.
The company said that no one would lose their job or get moved to worse contractual terms.The company said that no one would lose their job or get moved to worse contractual terms.
Related TopicsRelated Topics
TescoTesco
RetailingRetailing
Sainsbury'sSainsbury's
Cost of livingCost of living
SupermarketsSupermarkets
FoodFood