Sainsbury’s follows Tesco in cutting price of milk by 5p a pint
Sainsbury’s has followed Tesco in cutting the price of milk by 5p a pint as supermarkets take advantage of a spring boost to production.
Tesco, the UK’s biggest supermarket, cut the price of milk to 90p for a pint or £1.55 for four pints – a reduction of 10p – for the first time since 2020 this week.
Sainsbury’s quickly followed suit on Thursday in the latest example of how retailers have been trying to win over price-conscious shoppers with deals on popular items.
The price cuts will raise hopes of a slowdown in food inflation, as Tesco said on Thursday that the price of grain and cooking oils was also falling, although proteins and rice continued to rise.
A Sainsbury’s spokesperson said: “With costs going up, we are working hard to keep prices low, especially on the everyday essentials people buy the most.”
Industry insiders said the retail price reductions came after large wholesalers cut their prices by an unprecedented 5p a litre as the “spring flush” – when cows naturally tend to produce more milk as they are let out into fields – had led to oversupply.
Global energy and commodity prices have also come down in recent months, while supply bottlenecks have eased and demand has faltered in advanced economies amid weaker economic growth.
Higher dairy prices and the increased cost of a basket of groceries led many shoppers to switch from higher-priced brands to cheaper own-label butter and cheese.
The cuts come after milk and dairy products have been at the head of hefty food price inflation, which soared to 18% last month, according to the Office for National Statistics. Just over a year ago the big supermarkets were charging £1.15 for four pints of milk – so even with this week’s cut, Tesco and Sainsbury’s are charging a
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