Morrisons, the British supermarket, declared on Monday that it would be implementing price cuts on 47 products, with an average reduction of over 25%. This move serves as another positive signal suggesting that the recent surge in inflation may be starting to ease.
Prime Minister Rishi Sunak’s crucial economic commitment to cut inflation in half by 2023 has faced a setback due to the persistent high food inflation. According to the latest official data, food inflation stood at over 19% in April and industry data reported it at 17.2% in May, undermining the government’s target.
The Bank of England, lawmakers, and consumers grappling with the enduring cost of living crisis are keeping a vigilant eye on any signs that inflation could potentially abate or even reverse in the months ahead. This keen observation highlights the critical importance placed on the possibility of relief from the relentless rise in prices.
Morrisons, the fifth-largest supermarket group in Britain, announced that the latest round of price reductions would affect various products, including beef mince, ham, tomatoes, spinach, and wholemeal pittas.
With a commitment to maintaining the reduced prices for a minimum of eight weeks, Morrisons stated that this initiative required an investment of £26 million ($33.3 million).
Tesco, the market leader, announced on Friday that food inflation in Britain has reached its highest point and is expected to decline from now on.
Last week, Asda, the third-largest player in the market, made the decision to freeze prices on more than 500 products until the end of August. Meanwhile, Sainsbury’s, the second-largest player, implemented a price reduction on toilet paper, and Waitrose, the upmarket grocer, slashed prices on over 200 products.
Read More: British supermarket giant Asda announces price freeze on 500+ products to tackle inflation
Further insight into grocery inflation will be unveiled when market researcher Kantar releases its latest findings on Tuesday, and official data for the month of May is scheduled for publication on Wednesday. These upcoming reports are expected to provide a clearer picture of the current state of inflation in the grocery sector.
