Prices cut to help worried families
BRITAIN’S biggest supermarkets have launched an all-out price war as they slash charges on essentials to help struggling families.
Rocketing inflation and the conflict in Ukraine have seen the cost of living rise at its fastest rate in 30 years.
Asda and Morrisons became the first of the big four chains to tempt customers, promising to reduce a raft of everyday items as household budgets are squeezed.
The move prompted Tesco and Sainsbury’s to follow suit as the high street reacted to warnings that millions are now battling to make ends meet.
Morrisons has promised an average 13 per cent cut on more than 500 family favourites, including eggs, beef and rice. There will also be discounts on cereal, chicken, sausages, flour, bread, baked beans and ham.
Boss David Potts said: “We know our customers are under real financial pressure at the moment and we want to play our part in helping them when it comes to the cost of grocery shopping. These price cuts will have a noticeable and longterm impact on our customers’ budgets, and demonstrate our commitment to offering them the best possible value.”
Asda said it would lower prices on hundreds of essentials until the end of the year by investing £73million to tackle the cost-of-living crisis.
The chain said more than 100 family favourites, including fruit, vegetables, meat and frozen food, would be “dropped and locked” by an average of 12 per cent.
Co-owner Mohsin Issa said: “We know household budgets are being squeezed by an increasing cost of living and we are committed to doing everything we can to support our customers, colleagues and communities in these exceptionally tough times.”
Tesco also got in on the act, vowing to continue its war on budget chain Aldi by keeping prices low for shoppers “in their hour of greatest need”. Chief executive Ken Murphy said: “Inflation is very real for everyone. Household expenses going up and finances stretched. It has been many years since we last saw living costs rise at the rate they are today.
“For our customers that means looking really critically at where they spend their money. They are already planning changes to the way they shop, and we will make sure that we will be there to support them.”
And Sainsbury’s has cut the cost of some products by a third. A spokesman said: “We are acutely aware of the rising cost of living.
“We are relentlessly focused on keeping prices low on the products that our customers buy most often
such as meat, fish, poultry, dairy and fresh produce, and are committed to doing everything we can to help our customers, colleagues and communities at this challenging time.”
Co-op said it had invested £18million in price reductions and will lock in the price of hundreds of popular products.
A spokesman said: “We’ve held the price of 1,000 items and introduced new deals to give everyday value to our customers.”
Morrisons, Britain’s fourth largest supermarket, has also cut the price of one quarter of its 235 entry-level products, including Morrisons Savers items.
More than 180 products have been included in new multi-save promotions, including a buy two for £1.80 on cereals, a buy two for £3 on breaded chicken and a buy two for £5 on ready meals.
Asda said a survey revealed 90 per cent of customers were concerned about inflationary pressures and soaring grocery prices. It is tempting customers with price reductions on all sorts of cupboard favourites in a bid to help families struggling to cope.
While a price war signals good news for frugal shoppers, experts warned of a summer food scramble sparked by shortages and spiralling wholesale prices – and even said certain products, including cooking oil, could be rationed.
Shortages
Some supermarkets are already limiting how much sunflower oil, which is largely sourced from Ukraine, people can buy.
Tesco, Morrisons, Waitrose and Iceland are limiting how much of the oil can be bought.
Ukraine and Russia normally export tens of millions of tons of wheat and other grain, which is used in food production and animal feed.
Shortages and higher prices will have a knock-on effect on the costs of products including bread, pasta, chicken and sausages.
The wholesale price of butter and skimmed milk powder, used in processed foods, is up 59 per cent in a year, cream by 58 per cent and mild cheddar by 45 per cent, according to the Agriculture and Horticulture Development Board. Meanwhile, strict Covid lockdowns in China have plunged the world’s second largest economy into meltdown. Consumer rights expert Scott Dixon said: “While this is welcome news, consumers will take a cynical view and ask, ‘Why now and not sooner?’ “Consumers will also expect these price cuts to be recouped on other items, as the price cuts are on staples which are most affected by the soaring cost of raw materials.” Yesterday, the Daily Express reported that rocketing inflation and sky-high prices will make this a “year from hell” for millions, particularly pensioners and those on fixed incomes.
Britain is bracing itself for a major slump in living standards not witnessed since the 1950s.
Many of the problems pushing households to the brink have been blamed on the fallout from Covid and the consequences of Russia’s war in Ukraine.
The Consumer Price Index now stands at 6.2 per cent, the highest since 1992. Experts predict the progressive increase in prices of goods and services will see it nudge 10 per cent by the end of the year.
At the start of the month the price of gas and electricity soared by 54 per cent as industry regulator Ofgem raised the price cap for an average home to £1,971, from £1,277.
It is expected households will have to stump up another £700 from October, with bills set to reach an eye-watering average of £2,700 a year.
THE cost-of-living crisis continues to bite. Inflation, supply chain issues and the effects of the war in Ukraine have caused the costs of goods and services to soar at the fastest rate in a generation.
But there’s a glimmer of good news – our biggest supermarkets are starting to slash the prices of essentials.Asda and Morrisons led the way, and Tesco and Sainsbury’s have followed.
True, each chain vies for customers, but if it benefits British households at a distressing time, there’s nothing wrong with that. In the midst of crisis, let’s enjoy these small mercies.