Asda announces price cuts as Income Tracker shows families still under pressure

The reductions follow a £13 million investment last month from the chain, in which it cut prices on more than 200 own-label products by an average of 9 per cent.

Kris Comerford, Asda’s chief commercial officer, said: “While the headline inflation rate may have eased slightly last month, our own data tells us that many customers are continuing to struggle with rising living costs.

"We have targeted this latest price investment on the products that our customers buy week-in and week-out, to help their shopping budgets stretch further. We’re also continuing to work closely with our suppliers and whenever there is an opportunity to pass on commodity price savings to customers we will do so.”

Asda said that its latest Income Tracker shows that family budgets remain under pressure from rising living costs. Despite the CPI inflation rate easing last month, family disposable incomes remain much lower than before the cost-of-living crisis, down by over £100 per month for the average household compared to July 2021.

The price reductions are effective from 24 August in all stores and online.

Earlier this month, Asda reported a 9.6 per cent rise in like-for-like sales up to £5.4 billion for the three months to the end of June.

The firm told PA News Agency that it had benefited from increasing sales of its own-brand products, as the cost-of-living crisis led customers to try and find cheaper alternatives.

Asda said sales of its own-brand products had jumped by 14.7 per cent over the three month period.

In May of 2022, the firm replaced its Smart Price discount line with its new Just Essentials range. The firm said the line had captured a fifth of the market since its launch.

Asda also reported that like-for-like sales in its clothing business had grown by 2.8 per cent for the three months ending 30 June, and that its general merchandise business had grown by 6.3 per cent.