Lidl is reducing the price of a medium sliced pan to 85c, saving consumers more than 10pc a loaf.
The reduction will apply to Lidl’s range of five sliced-pan products and comes into effect immediately, it said.
Last month the German discounter cut the price of its own-brand milk by 10c, prompting rivals to match its reductions.
Shoppers will be hoping this latest move by Lidl to cut bread prices will kick-start a wider price war ahead of the expensive Christmas period.
A response from Dunnes Stores, Aldi, SuperValu and Tesco is expected.
Lidl’s Medium Sliced White Pan (800g) is being reduced in price by 10c to 85c. Its Toaster Sliced White Pan (800g) is now 99c, also down 10c.
The White Half Loan (400g) is being reduced by 4c to 75c, and the Brown Pan Medium Sliced (800g) is going down by 10c to 95c. The Best Balance Sliced Pan (800g) will now be €1.05, down from €1.09.
Lidl Ireland and Northern Ireland chief executive Robert Ryan said his company will not be beaten on price. “This latest round of price cuts represents our continued investment in delivering real value for our shoppers.
“Bread is a household staple, and by lowering the costs of everyday essentials including bread and milk, we’re helping families’ money go further.”
Last month the German retailer prompted its rivals to follow it after it lopped 10c off the price of milk.
The new price cuts come days after official figures show that consumers are facing into a costly Christmas as groceries, energy bills and even pints have all risen in price. Figures from the Central Statistics Office (CSO) on Thursday indicate that inflation is now at its highest level in a year-and-a-half.
Food prices have continued to rise, with dairy items such as butter, cheese and milk going up, according to the consumer price index for last month.
Overall consumer prices rose by 2.9pc in the 12 months to October, the CSO said. This represents the highest annual rate of inflation since March 2024.
The CSO figures for October indicate that the nationwide price of a large white sliced pan (800g) is up 7c to €1.68 in the past year. A large brown sliced pan is now €1.87 nationally, up 3c in the past year.
Last month UCC economist Dr Oliver Browne predicted what he said would be a limited price war, with the milk price cuts to be followed by reductions in the price of bread. He said there was scope for price cuts in bread, cereals and other flour-based goods after flour prices had fallen 12pc in the past year.
Cost-of-living pressures mean that more than half of consumers are planning to cut back on dining out and entertainment this Christmas because of cost-of-living pressures. A majority plan to give smaller gifts, according to the latest KPMG Next Gen Retail survey.
The survey found that 77pc of shoppers expect Christmas to be far more expensive this year, and 40pc plan to spend less than last year. This marks an increase in cautious spending habits.