Tesco cuts prices on more than 500 groceries

Tesco PLC (LSE:LON:TSCO) is slashing the prices of more than 500 everyday products including pasta, milk and fish.

On average the groceries in question will drop by 13%.

Ashwin Prasad, chief product officer at the retailer, said: “We know that more than ever our customers are looking for great value.

“We’ll continue to work closely with our suppliers to pass on price cuts to our customers whenever we can.”

On Thursday, UK farmers questioned comments made by some of the grocery giants, disagreeing with claims they only make 3p-4p profit on every pound.

A report by UK regulators into whether supermarkets have been profiteering is expected to be published next week.

J Sainsbury (OTC:JSAIY) PLC (LSE:SBRY), Tesco’s closest rival in terms of market share, is also cutting prices, its dairy products will drop for the second time in three months.

From Saturday onwards four pints of milk will cost £1.45, down from £1.55, and two pints, down 5p, will cost £1.20.

The UK’s second-largest supermarket already invested £15mln earlier this week into reducing prices of cupboard essentials like bread, cornflakes and jam.