Morrisons slashes prices on bread and cheese in first ‘deflation dividend’
Earlier this month, prices for milk, loaves of bread and butter were lowered across UK grocers, thanks to declining dairy and wheat costs.
Mr Potts said Morrisons was “on the front line of commodity prices” because, unlike other supermarkets, it also owns food factories.
He added: “We’ll look to pass on any easing to our customers quickly. This week we’re launching our fourth wave of price cuts this year, including a number of products that we make or prepare ourselves.
“In particular bread rolls and cheese will be down very significantly in what we believe will be the first of many ‘deflation dividends’ for our customers.”
Morrisons has been among the most aggressive on price cuts in recent months, launching four rounds of reductions, as it battles to lure shoppers back from the German discounters.
Aldi and Lidl have seen their market share balloon over the past year as more customer hunt out the best value. Morrisons was leapfrogged by Aldi as Britain’s fourth largest supermarket last summer.
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