Online supermarket Ocado Retail has cut prices of more than 100 items it classes as essential to match reductions recently from the main grocery chains.
Ocado Retail, a joint venture between Ocado and Marks & Spencer said the cuts would amount to a reduction of around 10% on average and cover milk, Greek yoghurt and types of bread among other things.
Four pints of Ocado own-brand milk, for example, drop by 10p to 145p.
Supermarkets have been accused of profiteering for months due to a perceived stubbornness in passing through falling wholesale prices, something all have denied saying it takes time for the effect to work through the supply chain.
A report from the UK competition regulator the CMA on profiteering by supermarkets is due next week, with The Grocer suggesting it might lead to the creation of a task force to tackle high food prices.
Most chains have now started to lower prices, however, with Sainsbury this week announcing a further £15mln of ‘investment’ in price cuts.
Calls for the UK government to impose caps have been rejected by ministers though France last week forced 75 food companies to drop their prices.
Shares in Ocado rose by 3.25% to 527p, making it the top FTSE 100 performer on the day.