Food prices may finally start to fall, according to a financial expert, after another supermarket jointed Tesco in cutting the cost of milk.
Laith Khalaf, head of investment analysis at AJ Bell in Bristol, told the BBC the move was "some light at the end of the inflationary tunnel for consumers".
Tesco yesterday slashed the price of a four pint of milk from £1.65 to £1.55, two pints from £1.30 to £1.25 and one pint from 95p to 90p.
It marks the first reduction in the price of milk at the supermarket since May 2020.
Sainsbury's then today followed suit, with identical price cuts.
Speaking before Sainsbury's announced its price cuts, Mr Laith said the move by Tesco suggested the "fiercely competitive" supermarket sector wasn't "simply going to cash in on profits as wholesale costs fall".
Food prices in the UK have increased significantly due to rising inflation, which remains in double-digit figures.
Last month, the Office for National Statistics said prices for food and non-alcoholic drinks increased by 18.3% on a yearly basis.
Bigger supermarkets such as Tesco, Asda and Sainsbury's are having to constantly monitor their prices amid stiff competition from discounters Aldi and Lidl.
The two German discount chains have seen a rise in demand since the cost of living crisis began as shoppers are looking to find the cheapest products and most cost effective deals.
Tesco said the price reduction was down to a "cost price deflation for milk across the market in recent times" and it wanted to "pass that reduction on to customers".
Another financial expert told the Daily Mail that the "supermarket price war" had been underway "for a considerable amount of time".
More expensive supermarkets were slashing their pricing to keep hold of shoppers, they claimed, but customers shouldn't expect to see price reductions across the board just yet.
Richard Hunter, head of markets at Interactive Investor said: "'The supermarket price war has been underway for some considerable time, and in the current environment basement prices have become extremely important to the cost-pressured consumer.
"The reduction in milk prices will be a welcome development, but with food inflation overall still around 17%, upward pressure on prices are very much intact."
List of current milk prices
One pint:
- Aldi - 95p
- Asda - 95p
- Sainsbury's - 90p
- Tesco - 90p
Two pints:
- Aldi - £1.30
- Asda - £1.30
- Morrisons - £1.30
- Sainsbury's - £1.25
- Tesco - £1.25
Four pints:
Aldi - £1.65
Asda - £1.65
Lidl - £1.65
Morrisons - £1.65
- Sainsbury's -£1.55
- Tesco - £1.55
