Cheaper milk: Aldi, Lidl & Asda latest to cut price of milk by at least 5p - how much does it cost now
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Customers now have access to cheaper milk after giant supermarkets Aldi, Lidl, and Asda joined their rivals Sainsbury’s and Tesco in cutting its price for the item by at least 5p. This means a pint of milk at the supermarkets now costs 90p, in their effort to match other food stores.
Despite the drop in prices, milk still costs more than double the average price before Covid, when it only cost 43p in March 2020, according to official data. All five supermarkets have also confirmed the reductions in price will not affect how much they pay farmers.
Tesco, which dropped the price of milk for the first time since May 2020 on Tuesday (April 12), said it made the decision because its costs for buying milk had fallen. Meanwhile, Asda said that it had taken "swift action to reduce the price of milk as commodity prices have eased".
Arla, the UK’s largest dairy producer, said in March that the price of milk was already expected to fall by around 5.3p per litre this month because of rising supplies and falling demand from cost-conscious shoppers.
The move comes as food inflation has reached its highest level since 1978. According to the most recent government figures, food costs grew by 18.2% in the year to February. Milk alone has increased in price by 43% over the same time period, and it is only one of numerous items, such as cheese and eggs, that have grown in price and pinched household budgets.
However, some analysts have suggested that supermarkets reducing their prices is a possible sign that hikes in the cost of a weekly shop could be starting to ease.
Arthur Fearnall, a farmer and board director at Arla Foods, told the BBC: "While some prices for dairy categories are seeing early signs of levelling out, the severity of the on-going cost of living crisis and volatile economic environment is continuing to negatively impact consumer demand for both conventional and organic milk."
Paul Savage, agriculture director at Arla, said milk supplies in the UK rose by 3.2% in March compared to the same month last year. He said: "When coupled with a decline in dairy consumption and an overall decline in shopping spending, with 75% of people cutting expenditure on food, this is creating a change in the supply and demand of milk.
How much does milk cost now?
- One pint: from 95p to 90p
- Two pints: from £1.30 to £1.25
- Four pints: from £1.65 to £1.55