Tesco, Britain's biggest supermarket, cut the price of more than 500 essential items on Friday, in the latest sign that a surge in grocery inflation will moderate this year.

Stubbornly high inflation has become a major political issue in Britain as it outstrips pay growth, and supermarket chains were forced to defend themselves on Tuesday against claims they have been profiteering from a cost-of-living crisis.

Tesco said it had cut the price of certain packs of own-brand pasta, tinned tuna, milk, grapes, cheese and other goods by an average of 13%, saying that it was working with its suppliers to pass on reductions where it could.

All of Britain's major grocery chains, including no.2 player Sainsbury's, have announced price cuts of staples in recent weeks, moves watched closely by the Bank of England, lawmakers and consumers who are all hoping for relief from rising prices.

Tesco said the 5 pence cut on fusilli pasta is the second in recent weeks, meaning shoppers will pay 20 pence less for a 500 gram pack than they would have paid in May. A four-pint bottle of milk is also 10 pence cheaper, a second price cut in as many months.

Aldi, the German discount supermarket which is Britain's fourth largest grocer, also said on Friday it was also cutting the price of four pints of milk by 10 pence to 1.45 pounds, the lowest price in its stores since September.

UK food and drink inflation was 18.3% in May, according to the most recent official data, and 14.6% in June, according to industry data.

Tesco said earlier in June that while some commodity prices were coming down, energy and labour costs remain high, fuelling inflation. (Reporting by Sarah Young, Editing by Paul Sandle)