Premier Price Reductions: GCSE Business In the News

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What's the story?

Premier Foods, which makes brands like Mr Kipling and Bisto, plans to cut prices on more products after discounts late last year.

Price reductions will extend to items like Mr Kipling Bakewell slices and Loyd Grossman sauces. This comes as data shows food price inflation dropped to 8% in December, down from a peak of 19.2% in March 2022.

However, Premier still plans to increase prices for own-brand supermarket products it supplies. Many shoppers switched to cheaper private label goods amid high food inflation over the past year.

While slowing food inflation may ease household pressures, it doesn't necessarily mean lower prices, just smaller rises. Premier started cutting prices on major brands like Batchelors noodles and some Mr Kipling in late 2022. This helped Premier report a 14.4% sales increase over Christmas versus the prior year.

Suppliers like Premier have faced scrutiny about not passing savings to shoppers quickly enough. A competition watchdog said some brands raised prices more than costs over the past two years.

Premier price reductions