Oxo-maker Premier Foods to cut prices as cost pressures ease 

Gradually cooling food inflation has brought some relief to the grocery sector at a time when consumers are cutting back on non-essential spending.

Premier Foods, which makes Mr Kipling, Ambrosia, Oxo cubes and other grocery products, has raised its profit forecast for the year and said it would cut prices of some of its popular products helped by easing costs. 

As some input costs start to soften, major brands are back to prices they were at in the summer of 2022, chief executive Alex Whitehouse said, adding Premier was looking at more initiatives to reduce prices in the second half of the year. Premier, like many companies, had raised prices to keep up with soaring inflation. 

It currently expects its 2023-24 trading profit to be 10% ahead of last year's £157.5m (€180m). 

Gradually cooling food inflation has brought some relief to the grocery sector at a time when consumers are cutting back on non-essential spending and choosing more economical options like a home cooked meal amid the cost-of-living crisis.

When purse strings are a bit tight, consumers tend to skip eating out or getting takeaway food and prefer cooking at home, Mr Whitehouse said. 

Premier reported a 21% rise in adjusted profit before tax for the six months to the end of September. Shares in the company have gained about 20% this year. 

•Reuters