Tesco becomes the first supermarket to lower the price of milk
- The supermarket says that the reduction will not affect the price it pays the dairy farmers
Tesco has cut its milk price for the first time since May 2020, a hopeful sign that the rise in food inflation may ease in the coming months.
The supermarket giant said today it was slashing the price of a four-litre carton of milk from £1.65 to £1.55, two pints from £1.30 to £1.25 and a pint from £95 to £90.
“We have seen some cost price deflation for milk in the market lately and we want to take this opportunity to pass that reduction on to customers,” said Jason Tarry, CEO of Tesco UK.
He said the price cut would not affect the price Tesco pays its dairy farmers.
Tesco also said it was fixing prices on more than 1,000 everyday products until July 5, including Yorkshire Tea, McCain oven chips, Shredded Wheat, Kenco instant coffee and Aquafresh toothpaste.
Tesco said it reduced the price of a four-litre carton of milk from £1.65 to £1.55, two pints from £1.30 to £1.25 and a pint from £95 to £90
Tesco also said it was fixing prices on more than 1,000 everyday products until July 5 (stock image)
Mr Tarry said the ongoing price lock on many daily necessities, as well as the fall in milk prices, will help to give customers peace of mind at a time when many families are still feeling the effects of a cost of living crisis.
“We know that customers still need to budget carefully, so we’re pleased to be able to lower prices where we can, as well as help them a little extra by fixing the prices of over a thousand everyday products.
‘Milk is an important daily staple for so many families. We’ve seen some cost price deflation for milk across the market recently and we want to take this opportunity to pass that reduction on to customers.
‘This has no effect on the price we pay our farmers. Our Tesco Sustainable Dairy Group was established to ensure that UK farmers receive a fair, independently determined price for the milk they produce for us.
“Our model gives farmers certainty when the market price for milk falls below production costs and reflects our long-standing commitment to our farmers.
‘Whether you’re buying a branded favorite that falls under our price slot, stocking the cupboards with essentials from Aldi Price Match, or treating yourself to an exclusive Clubcard pricing deal – you can be sure to find great value for money at tesco.’
According to market researcher Kantar, inflation for foodstuffs rose to a record 17.5 percent in March, with prices for products such as milk, cheese and eggs rising fastest.
Overall UK inflation for food and non-alcoholic drinks was 18 percent in February, the highest since 1977, according to official data.
UK headline consumer price inflation stood at 10.4 percent in February, official data showed, boosted by higher food and drink prices in pubs and restaurants.
The Bank of England predicts it will fall sharply this quarter and fall below 4 percent by the end of this year.
Tesco has a 27 percent share of the British supermarket market.