Tesco has cut the price of milk for the first time since May 2020 in a hopeful sign that surging food inflation may ease in the coming months.
The supermarket giant said today it was reducing the price of a four-pint carton of milk from £1.65 to £1.55, two pints from £1.30 to £1.25 and a pint from 95p to 90p.
‘We’ve seen some cost price deflation for milk across the market in recent times and we want to take this opportunity to pass that reduction on to customers,’ Tesco UK CEO Jason Tarry said.
He said the price cut would not affect the price Tesco pays its milk farmers.
Tesco also said it was ‘locking in’ prices on more than 1,000 everyday products until July 5, including Yorkshire Tea, McCain oven chips, Shredded Wheat, Kenco instant coffee and Aquafresh toothpaste.
Tesco said it was reducing the price of a four-pint carton of milk from £1.65 to £1.55 pounds, two pints from £1.30 to £1.25 and a pint from 95p to 90p
Tesco’s move came a day after rival supermarket giant Sainsbury’s revealed its Nectar Prices scheme to take on Tesco’s Clubcard Prices.
The changes bring the Nectar scheme closer to that operated by Tesco, which launched its Clubcard in 1995 before adding the ‘Clubcard Prices’ element in May 2019 that offers lower prices on products across the store for those who have the card or app.
Sainsbury’s shoppers must scan their Nectar card or app at the check-out to benefit from the lower prices for scheme members.
It can bring significant savings on a range of items.
For example, a 24-pack of 330ml Coke Zero that is normally £10 will be available for just £5. Ariel All-in-1 pods with Nectar Prices are £5 instead of the typical £10.50.
Mr Tarry said Tesco’s continued price-lock on many everyday essentials, as well as the drop in milk prices will help to provide customers with peace of mind at a time when many families are still feeling the effects of a cost of living crisis.
He said: ‘We know that customers are still having to budget carefully, so we’re pleased to be able to reduce prices where we can, and also give them a little extra help by locking the prices of more than a thousand everyday products.
‘Milk is a key everyday staple for so many families.
‘We’ve seen some cost price deflation for milk across the market in recent times, and we want to take this opportunity to pass that reduction on to customers.
‘This will not affect the price we pay our farmers. Our Tesco Sustainable Dairy Group was set up to ensure that farmers across the UK get a fair, independently-set price for the milk they produce for us.
‘Our model gives farmers security when the market price for milk falls below the cost of production and reflects our long-standing commitment to our farmers.
‘Whether you’re buying a branded favourite covered by our price lock, stocking the cupboards with essentials from Aldi Price Match, or treating yourself to an exclusive deal with Clubcard Prices – you can be confident of finding great value at Tesco.’
Tesco also said it was ‘locking in’ prices on over 1,000 everyday products until July 5 (stock image)
In March, grocery inflation rose to a record 17.5 per cent, according to market researcher Kantar, with prices rising fastest for products such as milk, cheese and eggs.
Meanwhile, UK inflation for food and non-alcoholic drinks was 18 per cent in February, the highest since 1977, according to official data.
Overall UK consumer price inflation ran at 10.4 per cent in February, the Office For National Statistics said, pushed up by higher food and drink prices in pubs and restaurants.
The Bank of England forecasts it will fall sharply during the current quarter, dropping to below 4 per cent by the end of this year.
Tesco has a 27 per cent share of Britain’s grocery market.
