British supermarket group Sainsbury's said on Thursday it was cutting the price of own-brand milk for the second time in three months, adding to a body of evidence that a surge in grocery inflation will moderate this year.
Sainsbury's, Britain's No. 2 grocer after market leader Tesco, said that from Saturday four pints of milk would cost 1.45 pounds ($1.83), down from 1.55 pounds, while two pints would cost 1.20 pounds, down from 1.25 pounds.
The move follows cuts on milk on Thursday by online supermarket Ocado.
Stubbornly high inflation has become a major political issue in Britain as it outstrips pay growth for almost all workers, while higher taxes and rising interest rates are also straining household budgets.
UK food and drink inflation was running at 18.3% in May according to the most recent official data, and 14.6% in June according to the most recent industry data.