It has long had the reputation as Britain’s most luxurious supermarket. But even Waitrose customers are being squeezed by the cost of living crisis, leading to the store slashing the prices of some of its own-brand basics. Almost a third of items in the high-end grocer’s Essential range will have their costs cut – including coffee, carrots and butter. The supermarket said it will spend £100m in reducing the prices of hundreds of items. Costs will be cut by an average of 14% from Wednesday, but almost a quarter of the savings will be 20% or more. It comes after it was revealed households face an extra £788 on their annual shopping bills if they don’t reduce costs, with grocery price inflation hitting a record 16.7% in the four weeks to 22 January. This is the highest level since analysts Kantar started tracking the figure in 2008. Waitrose’s executive director, James Bailey, said: “We understand that getting value for money has never been more important for everyone. So we’re cutting the prices of hundreds of everyday favourites from carrots to butter, and tea and coffee, with many cut by 20% or more.” The retailer said it was committed to maintaining its commitments to its farmers and suppliers despite the cuts to shelf prices. Competition in the British grocery sector “is as intense as it’s ever been” as retailers strive to retain shoppers, Kantar said. Grocers have been boosting their own-label ranges especially, with sales of these lines growing consistently over the past nine months and by 9.3% in January – well ahead of branded alternatives which were up by just 1%. Waitrose held 4.7% of the grocery market share to 22 January. Discounter Aldi was the fastest-growing grocer for the fourth month in a row with sales 26.9% higher year-on-year to hold 9.2% of the market. Lidl’s sales jumped by 24.1%, putting its market share at 7.1%.