It said shoppers will save as much as 60% on these items after the price cut which has been made after a fall in the wholesale price of milk.

The price cut comes as food inflation reached 9% in the year to May, a rise from 8.8% in April, according to the British Retail Consortium (BRC) and NielsenIQ.

Included in the price cut is a pot of fat free natural yoghurt which is now 40p cheaper at £1, a 250g pack of soft cheese for £1.20 (40% reduction), a 300ml pot of double cream for £1.30, (30% price cut), and a 400g block of mild cheddar for £3.40, an 8% price cut.

The majority of supermarkets cut the cost of milk last month after wholesale costs fell.

Sainsbury’s said the latest price cut does not impact how much it pays farmers. It said in the last two years it has delivered more than £900m of cost savings for customers.

Expanded budget own-label range

Last week it confirmed it was expanding its own-label range by 10% and it would now be called Stamford Street. There are now 200 products within the range.

The supermarket has also added a range of branded dairy products to its newly-launched Nectar Prices loyalty scheme which sees members offered lower prices when they scan their Nectar card at the till.

These include a 500g pack of Lurpak, priced at £3.25 instead of £5, a 165g pack of Philadelphia cheese, down to £1 instead of £2.20, and a 350g package of Cathedral City cheese for £2.75, instead of £4.75.

Of the big supermarkets, Aldi is currently the cheapest, according to Which?. When the discount supermarkets are excluded, Asda comes out as the cheapest.

‘We want to do everything we can to help our customers’

Rhian Bartlett, food commercial director at Sainsbury’s, said, “With the rate of grocery inflation remaining at a record high, we want to do everything we can to help our customers manage their budgets and keep prices low on the products they buy most often.

“Whenever we are paying less for the products we buy from our suppliers, we will pass those savings on to customers. As we see the commodity prices starting to fall for milk, we have lowered the price of over 40 own brand products in supermarkets.

“We are relentlessly focused on offering our customers the best possible value so they know that they are getting a great deal on their everyday staples when shopping with us.”