Asda has joined the growing wave of supermarkets announcing food price cuts as costs ease, adding to evidence that soaring inflation in the sector is past its peak and should continue falling for the rest of the year.
The supermarket is reducing the price of 226 own-label products by an average of 9%, including fresh fruit and vegetables, frozen meat and fish products, cupboard staples and ready meals.
Last month, Asda launched a summer price lock campaign to freeze the prices on 500 branded and own-label products until the end of August.
Kris Comerford, Asda’s Chief Commercial Officer, said: “We know that families are continuing to feel the pinch financially – especially as they head into the summer holidays – and are looking for help to make their grocery budget stretch further. Whenever there is an opportunity to help them make their money go further by lowering prices we will continue to do so.”
Office for National Statistics (ONS) figures released this week showed that food and non-alcoholic drinks prices rose 17.4% year-on-year in June, but this was down from 18.4% in May. The largest downward contribution came from the milk, cheese and eggs category, helping offset upward effects came from sugar, jam, syrups, chocolate and confectionery, and mineral waters, soft drinks and juices.
NAM Implications:
- Join the queue…
- In a dynamic price competitive market…
- …all retailers will have to fall in line…
- …or suffer share loss.
- Suppliers need to ensure they access and maintain their fair share.
