Supermarket to launch new round of price cuts

UK supermarket Asda will on Friday cut the prices of 226 own label products by an average of 9%, adding to a body of evidence that a surge in UK food inflation is on the wane, it said on Thursday.

Asda, Britain’s No. 3 grocer after market leader Tesco and Sainsbury’s, said the latest price cuts are across fresh fruit and vegetables, frozen meat and fish products, cupboard staples and ready meals.

Grocery prices are in the spotlight as Britons grapple with a cost-of-living crisis into its second year.

Signs that inflation is abating are being closely watched by consumers, the Bank of England and lawmakers.

Food price inflation slowed to 17.3% in June, according to official data, and 14.9% in July, according to industry data.

While all British supermarkets have cut the prices of some staple products in recent weeks, researcher the Institute of Grocery Distribution has cautioned that food price inflation will still be around 9% in December.

Asda’s latest cuts come ahead of the publication later on Thursday of the competition regulator’s review of grocery prices.

The supermarkets deny claims from some politicians, consumer groups and trade unions that they are profiteering.

On Wednesday, the co-owner of Asda, Mohsin Issa, was criticised by lawmakers for failing to answer questions on the group’s fuel pricing strategy.