The UK's largest retailer Tesco has taken the unprecedented step of increasing its banana price, apparently for the first time in over a decade. The move comes at a time when the country's leading retailers are engaging in an intense price war aimed at offering consumers inflation-busting rates to keep them coming through the doors.
Tesco has reportedly lifted its banana price to £0.77 per kg for loose bananas, some £0.10 more than the price currently on offer at rival supermarket chains Sainsbury's, Morrisons and Asda.
According to observers, the decision to up its price reflects the widely held belief that UK retailers' margins on bananas are now extremely tight as a result of economic factors including the rising cost of production and transportation, as well as recent downturns in the volume of supply available.
In a statement published by UK newspaper The Independent, Tescosaid: 'We are committed to offering our customers great value and havea number of different offers running each week, including our fruit andveg pledge which promises to cut prices weekly on favourite fruits andvegetables. Unfortunately, due to costs in the supply chain we do haveto occasionally raise the prices of some items.'
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