The UK has been on a “strong footing” this year, with the government spending less on welfare and reducing its deficit, but the Government has also cut its supermarket price target by 10 percentage points.
The retailer has been the target of a barrage of criticism over the past few weeks, with customers and analysts questioning whether its latest price cuts are really necessary.
The company said on Thursday that its target for this year had been reduced by about 20 per cent from £2.95 to £2 to £1.95.
The supermarket’s new price target will apply from April 16.
It is not yet clear how many people will see their grocery price increases.
Its chief executive, Neil Mawston, said the retailer had decided to cut prices “to make sense” of the global economic situation, and that the current global economic environment was too difficult to predict.
“It’s been challenging for a while to make meaningful sense of this global economy and to understand what it’s like to live in a global economy,” he said.
“And this is why we have to adjust our grocery prices to reflect the reality of what’s going on around the world.”
The supermarket is in a tricky position.
Its main competitor, Aldi, is offering lower prices, and it is one of the few remaining UK supermarkets that still offers a free delivery service.
But Aldi is the second-biggest grocery chain in the UK, with a supermarket store count of more than 4 million, and Aldi has been accused of trying to sell its own products to boost its own sales.
The company said it had been forced to adjust its prices to keep up with the new global economic climate.
“This is a very challenging time for us.
It’s hard for us to make financial sense of a very uncertain and challenging environment.”
But we have decided to reduce our grocery price targets for the rest of the year,” Mawston said.
Aldi, which is owned by German supermarket giant Sainsbury’s, said it would be reviewing its price targets, which had been set to start in March, to see if it could “work out what’s happening with the global economy”.”
A number of major supermarket chains are also set to increase prices this year. “
We are working closely with the Government and industry to get the best possible pricing for our customers.”
A number of major supermarket chains are also set to increase prices this year.
Aldi said it planned to raise its supermarket prices by up to 25 per cent for the whole of the next year.
It will also lower its food and drink prices by 5 per cent.
Tesco said it was “in discussions” with other supermarkets about how to keep pace with Aldi’s new prices, but it did not comment on whether it planned any other price increases in the future.