British supermarket Sainsbury's (SBRY.L) said it would cut the price of its toilet paper by as much as 11%, in the latest sign that some grocery prices are beginning to fall despite persistent high inflation.
Britain is struggling with one of the highest inflation rates among major advanced economies, and any signs that it could abate or even reverse in the coming months are being closely watched by the Bank of England, lawmakers and consumers.
Sainsbury's, Britain's second largest supermarket, said on Wednesday that the price of pulp used to make the paper had fallen for the first time in two years and as such it would pass on the savings to shoppers buying the own-brand product.
Rising grocery prices have been one the biggest drivers of the country's 8.7% inflation rate recorded for April, but there are hopes recent price reductions could help bring that figure down.
Sainsbury's move on toilet roll follows recent price reductions it and other retailers have made on items which have seen the sharpest rises, such as milk, butter, bread, pasta and vegetable oil over the past year.
