Sainsbury’s said it would inject £65million into its prices next month amid growing pressure on customer budgets.
Simon Roberts, chief executive of the supermarket chain, promised the brand would stand by its customers “to ease the financial pressure they are facing”.
The latest price pledge – part of a wider £500million investment pledge – comes as new figures from the British Retail Consortium (BRC) reveal customers have witnessed food inflation 9.3% in August, compared to the same month last year.
The UK’s second-biggest grocery chain said £60m of its latest cash injection would go to food prices in September.
He said this will mainly go to the Price Lock campaign which freezes the price of a series of his most popular products.
Around 2,000 food and household items have been priced for at least eight weeks, including a number of own-brand lines.
Sainsbury’s said the funding will also go towards its price match campaign against discounter rival Aldi.
Aldi and German rival Lidl have seen an increase in customer demand in recent months as cash-strapped shoppers seek better deals on groceries as soaring energy bills continue to weigh on household spending .
Sainsbury’s said it would also use £5m from its latest investment program to improve prices at its Argos and Habitat home goods operations.
Mr Roberts added: ‘We know how difficult this ‘back-to-school’ season will be for our customers.
“With families across the country facing steep rises in their energy bills, the situation is serious and our most important job at Sainsbury’s is to help our customers in any way we can.
“We have made tremendous progress in reducing prices since the launch of our new plan, but we are committed to going further.
“These are difficult times and all of us at Sainsbury’s are standing by our customers to ease the financial pressure they are facing.”