Supermarkets have cut the costs of some of their basic food items over the last month - so does this mean that food prices are to come down?
This week Tesco, Sainsbury's Lidl, and Aldi all cut the price of their bread and butter, just weeks after the price of milk was also slashed at all major supermarkets.
The cuts to bread and butter began with Sainsbury's earlier this week which reduced the price of its own-brand 250g packets of butter by 10p from £1.99 to £1.89 and its medium-sized white loaf from 85p to 75p.
Other major plays then followed suit with identical price cuts.
Supermarkets have faced heavy criticism over the last few months as the cost of food has skyrocketed in supermarkets due to inflation.
Food inflation reached a record high of 19.1% in March which is the highest level seen in 45 years and supermarkets were accused of profiteering from the crisis by Liberal Democrats leader Ed Davey and Unite the Union.
Supermarkets have rejected this claim.
Sainsbury's said it was able to lower some of its bread and butter prices due to wholesale prices beginning to fall.
Several factors are to blame for the rapid rise in food prices including the war in Ukraine, Brexit red tape and labour shortages to name a few.
Food prices overall are on the way down according to Grant Fitzner, chief economist for the Office of National Statistics (ONS) - but the drop had not yet reached supermarket shelves.
However, there may be gold in the hills as experts predict that the cost of food is to drop over the coming few months and with the stiff competition of supermarket pricing in the UK, consumers may see costs drop sooner rather than later.
Richard Lim chief executive of analysts Retail Economics said the profit margins between supermarkets were "wafer thin" compared to other areas of retail - this means prices are mostly kept as low as possible.
Richard Hyman, partner at Thought Provoking Consulting explained that the last time supermarkets made mass price hikes, it was during the financial crash of 2008.
However in response, they got a "bloody nose" from discounters such as Aldi, Lidl, B&M and Home Bargains who all moved in with cut-price products.
As Aldi is now one of the bigger chains in the UK, this is a mistake other major chains will likely not want to make again.
He added: "When the major players put their prices up they created a big gap between the big four and the discounters and lost billions of pounds of market share and most of them remember that.
Throughout the 2010s, supermarkets partook in a "race to the bottom" with their prices and the cost of a food shop dropped significantly.
Since the cost of living crisis began, many have also upped the incentives of their loyalty programmes - in particular offering cheaper prices for members - in a bid to keep customers.
However, with the cost of living crisis set to continue throughout the next year, brand loyalty will take a major hit and customers will likely continue to turn to the cheapest available option for them - so the supermarket price war is expected to heat up going forward.
On behalf of supermarkets, Andrew Opie, director of food & sustainability at the British Retail Consortium said: "Many supermarkets have seen profits fall in the last year due to the high cost of energy, transport, and labour, as well as higher prices paid to food manufacturer and farmers.
"Despite the squeeze on margins, retailers are investing heavily in lower prices for the future. To further help those impacted by the high cost of living, supermarkets have expanded their affordable food ranges, locked the price of many essentials, and continue to offer support to vulnerable groups.
"When cost pressures facing retailers do eventually ease, retail prices will follow fast as they fiercely compete for market share."
Full list of price cuts in 2023
Bread
Tesco
- Tesco Toastie White Bread Thick 800g - 75p
- Tesco White Bread 800g - 75p
- Tesco Wholemeal Medium Bread 800g - 75p
- Tesco Toastie Wholemeal Thick Bread 800g - 75p
Sainsbury's
- Sainsbury's Soft Medium Sliced White Bread 800g - 75p
- Sainsbury's Medium Sliced Wholemeal Bread 800g - 75p
- Sainsbury's Thick Sliced Wholemeal Bread 800g - 75p
- Sainsbury's Toastie Thick Sliced White Bread 800g - 75p
Sainsbury’s Wholemeal Medium Bread 400g - 65p
Sainsbury's Toastie White Thick Bread 400g - 65p
Aldi
- Village Bakery Toastie Thick Sliced White Bread 800g - 75p
- Village Bakery Medium Sliced White Bread 800g - 75p
- Village Bakery Wholemeal Medium Sliced 800g - 75p
Lidl
- Selected Rowan Hill Bakery Bread 800g - 75p
Butter
Tesco
- Tesco British Unsalted Butter 250g - £1.89
- Tesco British Salted Block Butter 250g - £1.89
Sainsbury's
Aldi
Lidl
- Dairy Manor Salted and Unsalted Butter 250g - £1.99 to £1.89
Milk
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
