One of the State's largest supermarket chains has announced price cuts averaging 9 per cent across a range of more than 200 grocery items.
Tesco said the cuts meant a total reduction of over 20 per cent on some staple products since their price-cutting campaign began 18 months ago - against a food inflation rise of 5 per cent in the same period.
Superquinn responded yesterday by reducing prices of some matching products. A spokesman said the company would not go head-to-head with Tesco on an item-by-item basis.
Marketing director Mr Eamonn Quinn claimed Tesco's announcement was prompted by Superquinn's decision not to pass on a VAT increase on 4,000 items to customers at the start of the month.
A Tesco spokeswoman rejected the claim. "The VAT increase was 1 per cent but our average price decrease is 9 per cent. Even with the VAT increase, our products are cheaper."
Yesterday's price cuts include items such as bread, milk, sugar, tea, confectionary and detergents. A two-litre container of Tesco brand milk fell two cent to €1.19, a home brand sliced white pan dropped four cent to €0.44 and a kilo of Siucra sugar dropped five cent to €1.08.
Price comparisons by Tesco show Dairgygold dairy spread selling at 10-15 cent lower than Dunnes Stores, Superquinn or SuperValu while a six-pack of Tayto crisps was 11-15 cent cheaper, Maxwell House coffee was 20-28 cent cheaper.
The spokeswoman said the price cuts would remain "indefinitely". She said there had been a noticeable rise in volume of sales since the campaign began. She denied the cuts were a response to the spread of low-cost German-owned chains Aldi and Lidl.
"Like any other competitor, they keep you focused on price but we have our Tesco Value range for very price-sensitive customers which competes very well with those stores."
The Director of Consumer Affairs, Ms Carmel Foley, welcomed the cuts but they represented savings only if the goods were part of a shopper's regular basket.