Lidl Ireland has announced a 10-cent reduction in the price of two litres of own-brand milk, in what it said was the first such cut from any big retailer since 2023.
The move is likely to spark an immediate reaction from rival supermarkets, with significant price matching a long-standing feature of the Irish supermarket space.
The price of two litres in the German discounter chain will fall to €2.35, with a pro-rata price reduction across its range of milk products.
Lidl said the move was part of a wider series of price reductions that will come into effect on everyday essential items.
“We understand that rising inflation and the cost-of-living crisis has posed significant challenges for our shoppers as well as our suppliers in recent years,” said Lidl Ireland chief executive Robert Ryan.
[ Ireland’s soaring prices since 2021Opens in new window ]
He said the price drop “represents a significant investment, but we are determined to support our loyal shoppers and reduce prices on the products that matter the most to demonstrate our commitment to always being the best value retailer in the country”.
He said its customers could expect to see “further price drops in the coming months”.
While the general rate of inflation is 2 per cent, grocery price inflation is running at more than three times higher.
According to the most recent figurers from retail analysts Kantar World Panel, supermarket price inflation was running at 6.3 per over the latest 12-week period compared with a rate of 5.4 per cent in the previous 12 weeks.