Britains Morrisons picks out over 500 products for price cuts

　　div classBodysc17zpet90 cdBBJodivpLONDON Reuters – Against a backdrop of soaring inflation in Britains food retail sector, supermarket group Morrisons said on Monday it was reducing prices on over 500 products.p

　　pBritain‘s fourth largest grocer after Tesco, Sainsbury’s and Asda said the lower prices cover 6 of its total volume sales.pdivdivdiv classBodysc17zpet90 cdBBJodiv

　　pMorrisons, owned since October by U.S. private equity firm Clayton, Dubilier &amp Rice, has been the worst performer of Britains socalled “big four” grocers in recent months, according to industry data.p

　　pIt said the price cuts were in essential items such as eggs, baked beans, rice, coffee, cereals, chicken, sausages and nappies. It said the average saving was 13.p

　　pThe group has also introduced new “multi save” promotions, such as two boxes of cereal for 1.80 pounds 2.30 and a “Compare &amp Save” campaign to help shoppers identify savings that can be made by swapping branded items for Morrisons own brand products.p

　　pSurging prices are causing the biggest squeeze on UK household incomes since at least the 1950s.p

　　pIndustry data published last month showed grocery price inflation hit 5.2 over the four weeks to March 20, the highest level since April 2012.p

　　pSupermarket groups typically try to keep down the prices of socalled “known value items”, of which shoppers instinctively know the cost, while pushing up the prices of other goods.p

　　pBritains overall inflation rate hit a 30year high of 7 in March and is expected to peak at nearly 9 later this year.p

　　pA survey published on Friday showed UK consumer confidence slumped to its lowest level since records began nearly 50 years ago. p

　　p1 0.7790 poundsp

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　　pp Reporting by James Davey Editing by Frank Jack Danielp

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