Tesco has announced a fresh wave of price reductions.

Tesco, Britain's largest retailer, reduced the price of more than 500 key products on Friday, the latest indication that a jump in grocery inflation may slow this year.

In Britain, stubbornly high inflation has become a big political problem as it outpaces wage growth, and supermarket chains were compelled to defend themselves on Tuesday against accusations of profiting from a cost-of-living crisis.

Tesco claimed it has reduced the price of some packs of its own-brand pasta, canned tuna, milk, grapes, cheese, and other items by an average of 13%, and that it was working with its suppliers to pass on price cuts where possible.

All of Britain's big supermarket stores, including number two Sainsbury's, have announced price cuts on basics in recent weeks, with the Bank of England, politicians, and consumers all expecting for respite from rising costs.

Tesco claimed the 5p price decrease on fusilli pasta is the second in recent weeks, implying that customers would pay 20p less for a 500g bag than they would have in May. A four-pint bottle of milk is also ten pence less expensive, the second price decrease in as many months.

Aldi, Britain's fourth largest retailer, added on Friday that it was lowering the price of four pints of milk by 10p to £1.45, the lowest price in its shops since September.

Based on the most up-to-date official figures, food and drink inflation in the UK was 18.3% in May and 14.6% in June.

Tesco stated earlier this month that, while commodity prices were down, energy and labour costs remained high, fueling inflation.

(Sources: investing.com, reuters.com)