Tesco, which has a 27% share of Britain's grocery market, said on Wednesday it was reducing the price of a four-pint carton of milk from 1.65 pounds ($2.05) to 1.55 pounds, two pints from 1.30 pounds to 1.25 pounds and a pint from 95 pence to 90 pence. "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 over 1,000 everyday products until July 5, including Yorkshire Tea, McCain oven chips, Shredded Wheat, Kenco instant coffee and Aquafresh toothpaste. Overall UK consumer price inflation ran at 10.4% in February, official data showed, 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% by the end of this year. Tesco will report full year results on Thursday. ($1 = 0.8053 pounds) (Reporting by James Davey; Editing by Bernadette Baum)
LONDON, April 12 (Reuters) - Britain's biggest
supermarket group Tesco has cut the price of milk for
the first time since May 2020, a possible early sign that a
surge in food inflation may abate in the coming months.
In March, grocery inflation rose to a record 17.5%,
according to market researcher Kantar, with prices rising
fastest for products such as milk, cheese and eggs. Overall UK
inflation for food and non-alcoholic drinks was 18% in February,
the highest since 1977, according to official data.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.