Supermarket Morrisons is to cut prices on meat, veg and fruit this week.
A spokesman said it would be reducing prices on nearly 160 products by an average 12 per cent on the items, in the latest round of its Price Crunch campaign. The latest move comes just a month after Morrisons trimmed the price of more than 1,000 products, including toiletries and seasonal fruit and vegetables, by an average of 18%.
Retailers believe that food price inflation is unlikely to arrive until the autumn when the supply of UK-grown fresh produce reduces and they are forced to buy more food from abroad.
Manufacturers are already feeling the effects of the weaker pound which has boosted exports but raised material costs. According to one survey last week, they have had to pass on the impact to clients.
Morrisons has so far cut prices on 4,435 products as it tries to thwart the rise of the discounters Aldi and Lidl which have been rapidly increasing market share in the UK.