Tesco becomes first supermarket to cut price of milk in first reduction since 2020

Tesco becomes first supermarket to cut the price of milk: First reduction since 2020 sees cost of a pint down to 95p

• The supermarket says the cut would not affect the price it pays its milk farmers

By Danya Bazaraa

Published: 16:33 BST, 12 April 2023 | Updated: 16:33 BST, 12 April 2023

Tesco has cut the price of milk for the first time since May 2020 in a hopeful sign that a surge in food inflation may ease in the coming months.

The supermarket giant said today it was reducing the price of a four-pint carton of milk from £1.65 to £1.55, two pints from £1.30 to £1.25 and a pint from 95p to 90p. 

‘We’ve seen some cost price deflation for milk across the market in recent times and we want to take this opportunity to pass that reduction on to customers,’ Tesco UK CEO Jason Tarry said.

He said the price cut would not affect the price Tesco pays its milk farmers.

Tesco also said it was ‘locking in’ prices on over 1,000 everyday products until July 5, including Yorkshire Tea, McCain oven chips, Shredded Wheat, Kenco instant coffee and Aquafresh toothpaste.

Tesco said it was reducing the price of a four-pint carton of milk from £1.65 to £1.55 pounds, two pints from £1.30 to £1.25 and a pint from 95p to 90p

Tesco also said it was ‘locking in’ prices on over 1,000 everyday products until July 5 (stock image)

Tesco price locked items

Yorkshire Tea – 40 bags, £1.50

McCain Naked Oven Chips – straight, 900g, £1.95

Cushelle Toilet Tissue, white – 9 roll, £5.60

Oykos Strawberry Greek Style Yoghurt 4 x 110g, £2

Shredded Wheat 30 pack, £3.20

Kenco Smooth Instant Coffee 200g, £6

Tesco Quadruple Strength Orange Squash – No Added Sugar 1.5 Litre, £1.80

Hartley’s Strawberry Jelly 135g, 95p

Homepride Self-raising Flour 1kg, £1.65

Aquafresh Fresh & Minty toothpaste 75ml, 80p

Mr Tarry said the continued price-lock on many everyday essentials, as well as the drop in milk prices will help to provide customers with peace of mind at a time when many families are still feeling the effects of a cost of living crisis.

‘We know that customers are still having to budget carefully, so we’re pleased to be able to reduce prices where we can, and also give them a little extra help by locking the prices of more than a thousand everyday products. 

‘Milk is a key everyday staple for so many families. We’ve seen some cost price deflation for milk across the market in recent times, and we want to take this opportunity to pass that reduction on to customers.

‘This will not affect the price we pay our farmers. Our Tesco Sustainable Dairy Group was set up to ensure that farmers across the UK get a fair, independently-set price for the milk they produce for us. 

‘Our model gives farmers security when the market price for milk falls below the cost of production and reflects our long-standing commitment to our farmers.

‘Whether you’re buying a branded favourite covered by our price lock, stocking the cupboards with essentials from Aldi Price Match, or treating yourself to an exclusive deal with Clubcard Prices – you can be confident of finding great value at Tesco.’

In March, grocery inflation rose to a record 17.5 per cent, according to market researcher Kantar, with prices rising fastest for products such as milk, cheese and eggs. 

Overall UK inflation for food and non-alcoholic drinks was 18 per cent in February, the highest since 1977, according to official data.

Overall UK consumer price inflation ran at 10.4 per cent in February, official data showed, pushed up by higher food and drink prices in pubs and restaurants.

The Bank of England forecasts it will fall sharply during the current quarter, dropping to below 4 per cent by the end of this year.

Tesco has a 27 per cent share of Britain’s grocery market. 

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