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UK supermarket Asda freezes prices of 500 products
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LONDON (Reuters) -Asda, Britain’s third largest supermarket group, has frozen the prices of over 500 products until the end of August, it said on Tuesday, adding to signs that a surge in food inflation is set to abate and even reverse in the coming months.
LONDON (Reuters) -Asda, Britain’s third largest supermarket group, has frozen the prices of over 500 products until the end of August, it said on Tuesday, adding to signs that a surge in food inflation is set to abate and even reverse in the coming months.
The retailer, which trails market leader Tesco and No. 2 Sainsbury’s, said the price lock included both branded and own brand products.
Examples included cupboard essentials such as cereals, pasta and tea, as well as salads, burgers and ice cream.
Asda is owned by brothers Zuber and Mohsin Issa and private equity group TDR Capital.
British consumers have been squeezed for more than a year by stubbornly high inflation which has outstripped pay growth.
Overall UK consumer price inflation ran at 8.7% in April, the most recent official data showed, while food and drink inflation was 19.1%, just below a 46-year high.
Grocery inflation eased slightly to 17.2% in May, industry data showed.
Food retailers have said they expect prices to rise in 2023 overall but with the rate of inflation declining through the year.
They have recently reduced the prices of some items which have seen the biggest rises, such as milk, butter, bread, pasta and vegetable oil.
On Monday, upmarket grocer Waitrose reduced the price of more than 200 products.
(Reporting by James Davey; editing by Sarah Young)
Food inflation refers to the rate at which the prices of food items increase over time. It is a significant component of overall inflation and can impact consumer purchasing power and living standards.
Cupboard essentials are staple food items that are commonly kept in a kitchen pantry. Examples include cereals, pasta, rice, and canned goods, which are used frequently in meal preparation.
A price freeze is a temporary halt on price increases for specific products or services. It is often implemented by retailers to help consumers during periods of high inflation.
A private equity group is an investment firm that uses funds from investors to acquire and manage private companies or assets. They aim to improve the value of these investments before selling them for a profit.
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