Aldi, Asda and Lidl have become the latest supermarkets to announce they are cutting the price of milk in stores following similar moves by their rivals.
It comes after Tesco revealed earlier this week that it would lower milk prices as it reported profits had halved following a “tough year” for shoppers amid high inflation.
Sainsbury’s announced a similar cut on Thursday.
All the chains said prices would be reduced by at least 5p in the coming days.
Aldi, Asda and Lidl said on Friday the cost of one pint would come down from 95p to 90p, matching other stores, while two pints will be reduced from £1.30 to £1.25.
Four-pint own brand bottles will fall by 10p from £1.65 to £1.55.
It comes despite soaring inflation on shop shelves, with latest figures from the Office for National Statistics (ONS) revealing food prices increased by 18% in the year to February.
However industry experts said a slight rise in the supply of milk – but a drop in demand – had given supermarkets more wriggle room to reduce what they charge.
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A spokesperson for Arla, the UK’s largest supplier of milk and cream, said: “The cost of living squeeze means consumers are putting less in their baskets, so demand is changing.
“At the same time, milk supply is growing, creating a change in the supply and demand of milk which is having a negative impact on the global value of milk.”
Susie Stannard, lead analyst for dairy at the Agriculture and Horticulture Development Board (AHDB), said the slight drop in global farmgate prices – the cost direct from producers – had given supermarkets the opportunity to make such commercial decisions despite tight margins.
She said: “Milk, along with bread, is a ‘trigger’ purchase, meaning that when we run out of milk (or bread) we would typically head to the shops.
“It is why we see so much milk sold through convenience stores even though it is more expensive. Retailers know that by being competitive on the price of basics such as milk and bread they will attract more shoppers.
“Shoppers are increasingly price-sensitive – it has become the number one driver of purchases – so it is more likely that supermarkets are responding accordingly to position themselves as leading on value.”
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