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Race To Cut Prices Cheaper Food And Mortgages. The UK's hard pressed families finally received some good news yesterday thanks to some price cuts which were announced, which will help ease spiralling household bills. A leading mortgage lender and two major supermarkets shed a ray of light on the gloom over the cost of living for millions with plans to lower prices. Tesco announced that it was set to introduce 1000 price cuts. Asda also launched a programme of reductions to attract customers. The stifled property market also received a massive boost when Nationwide announced it is cutting the price of its fixed rate mortgages. This move is likely to provoke other lenders into action, causing a wave of fairer deals for home owners and property buyers. These price cuts are welcome news as they came just as the latest figures showed that the annual inflation rate has risen from 2.5 per cent to 3 per cent.

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Contributed by spike on May 14, 2008, at 8:52 AM UTC.

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