Bread, eggs and butter will be sold at Asda for as little as 50p from Monday, with sausages already on sale for 16p for a packet of eight, and Tesco is reducing the price of 3,000 items by 50 per cent, also on Monday.
Supermarkets say that, as fuel prices soar and mortgage costs, electricity and gas charges rise, families are cutting back on their weekly shopping.
Budget supermarkets such as Aldi and Lidl have seen sales boom, with Aldi experiencing a 20 per cent rise in sales over the past four weeks, which is the fastest growth rate in Britain.
Marks and Spencer, however, has experienced a 3.2 per cent fall in takings in its food halls in the same period.
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Asda’s spokesman said: ‘It’s going to be a tough year and the retailers that drive value the hardest will win with customers.’
Tesco issued a statement saying that people ‘have been trying to get as much as they can from suppliers to build a reasonable war chest.’
MySupermarket.co.uk research reveals that the average family’s supermarket bill is expected to rise by £1,000 over the coming year, which is why Tesco and Asda have announced that they are cutting food prices. It may well spark a supermarket price war.