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UK Supermarket Asda Freezes Prices Of 500 Products

By Donna Ahern
UK Supermarket Asda Freezes Prices Of 500 Products

Asda, Britain's third largest supermarket group, has frozen the prices of over 500 products until the end of August, it said on Tuesday, adding to signs that a surge in food inflation is set to abate and even reverse in the coming months.

The retailer, which trails market leader Tesco and No. 2 Sainsbury's, said that the price lock included both branded and own brand products.

Examples included cupboard essentials such as cereals, pasta and tea, as well as salads, burgers and ice cream.

Asda is owned by brothers Zuber and Mohsin Issa and private equity group TDR Capital.

Stubbornly High Inflation 


British consumers have been squeezed for more than a year by stubbornly high inflation which has outstripped pay growth.

Overall UK consumer price inflation ran at 8.7% in April, the most recent official data showed, while food and drink inflation was 19.1%, just below a 46-year high.

Grocery inflation eased slightly to 17.2% in May, industry data showed.

High Price Expectations 

Food retailers have said they expect prices to rise in 2023 overall but with the rate of inflation declining through the year.


They have recently reduced the prices of some items which have seen the biggest rises, such as milk, butter, bread, pasta and vegetable oil.

On Monday, upmarket grocer Waitrose reduced the price of more than 200 products.

Read More: UK Regulator Clears Asda And Rival Co-Op's Fuel Deal

News by Reuters, edited by Donna Ahern, Checkout. For more retail news, click here. Click subscribe to sign up for the Checkout print edition.

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