J Sainsbury Plc reported higher sales and said that food inflation is starting to fall, suggesting that the cost-of-living crisis could start to ease for UK shoppers.

Retail revenue gained 9.8% on a like-for-like basis at Britain’s second-biggest supermarket in its first quarter. Sainsbury has spent more than £60 million ($76 million) on lowering prices since March, covering over 120 basic items like toilet paper, bread and milk.

Supermarkets are under pressure to pass on price cuts to customers wherever possible as grocery inflation remains elevated in the UK. Last month, Sainsbury unveiled price reductions on household staples including own-brand pasta, rice and corn flakes.

“Food inflation is starting to fall and we are fully committed to passing on savings to our customers,” Chief Executive Officer Simon Roberts said in the statement.

Sales growth came not only from higher prices but also from selling more food. Sainsbury said overall profit is on track with previous guidance, indicating it may increase this year.

UK grocers are fiercely competing with discounters Aldi and Lidl, which are gaining market share during the cost-of-living crisis. Sainsbury grew more than competitors during Easter, bank holidays and the recent coronation of King Charles III.

The grocer is price matching discount rival Aldi on around 300 products and also has grouped its cheapest own-label ranges under a new brand, Stamford Street, to make them more obvious to customers.

Sainsbury has also ramped up its loyalty offer, passing on discounts to customers with its Nectar card. Since it started in April the Nectar Prices program has helped customers save more than £90 million.

The shares have gained 26% this year.

(Updates with details of price reductions from second paragraph.)