Grocery prices falling in record pace since 2014

Grocery prices falling in record pace since 2014

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The Battling UK supermarket giants are bringing happy news to the shoppers and caution to its discounter rivals as they continue to cut costs to stay alive in the price war. According to newly revealed figures grocery prices are falling in a record pace. Trade magazine The Grocer reviewed prices of 60,000 grocery items in UK’s big four supermarket chains, Tesco, Sainsubry’s, Asda and Morrisons and found out that prices saw a downfall of 2.8 percent till February.

Morrison led the crusade against discounters with the biggest price fall at an average of around 5.2 percent. Whereas the other major supermarket Tesco cut its price by an average of 3.4 percent. Sainsbury’s and Asda also reduced costs of their grocery products by 2.2 percent and 1.4 percent respectively. Recently Morrisons has announced that it was reducing the price of more than thousand of its products including Vegetables, fruits, tuna and toilet roll.

UK’s fourth biggest supermarket Morrisons has also announced the launch of another reduction program named Price Crunch where shoppers could avail price cut of selected items for at least three months.  Apart from this Morrisons has cut prices on dairy products and household goods in an alarming rate ranging from 10 to 13 percent. Health and beauty products are almost seven percent cheaper than they were couple of month ago. Alcohol when bought from Morrisons now costs 3.3 percent less, whereas bakery products are cheaper by 3.6 percent.

The newly released report also finds an interesting equation where supermarket prices in UK has fallen every month since mid 2014. But the last year’s price fall was the highest rate in the recent past.

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