Supermarket giants launch price war

Asda was first to reveal cuts of £250 million to some 10,000 items spanning food and general merchandise.

Tesco then announced £270 million worth of reductions to more than 3,000 products.

Asda's price cuts take effect on Saturday while Tesco's start next week.

Andy Bond, CEO of Asda, said the supermarket's research showed the average British family had just £146 per month of disposable income left after paying all bills.

"We are declaring a supermarket price war today. Our research shows how little the average family has left once they've covered living expense which makes me even more committed to delivering Britain's lowest basket of groceries," he said.

Tesco said its price cuts were "genuine reductions" in addition to hundreds more in-store promotions.

Commercial director Richard Brasher said: "We want to make sure that our customers don't start their summer worrying about how to balance the budget and cutting the cost of their weekly shop is the best way we can help," he said.

Asda was last week named Britain's cheapest supermarket for the 10th year running by trade magazine The Grocer.

But Tesco says its independent price-checker shows it beats its rivals on low prices.