Asda sparks Harry Potter price war

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The supermarket had earlier put a maximum £8.87 retail price on Harry Potter And The Deathly Hallows - the same as rival chains Tesco and Sainsbury's.

But Asda's allocation of 500,000 copies will be priced at £5 per book when it launches on Friday night, the chain said.

Asda stores will limit sales of the £5 books to just two per person to prevent bulk-buying.

Customers who have already placed pre-orders with the chain will be charged the same price.

Spokesman Ed Watson said: "Kids trust Asda as the place to get a copy of the Deathly Hallows at a great price and that's exactly what we'll be giving them.

"Harry Potter has reignited children's passion for reading and our colleagues and customers are gearing up for the biggest book launch we've ever seen."

Asda's announcement will prompt other retailers to slash their prices.

The supermarket was forced to apologise to Bloomsbury earlier this week after it criticised the publisher's recommended retail price of £17.99 for the seventh and final Harry Potter instalment.

Waterstone's and Woolworths have set their prices at £8.99 per copy while WH Smith will charge £10.99.