Asda slashes its prices to up the stakes in supermarket price war

Asda has fired another salvo in the escalating supermarket price war, delivering£65 million of cuts as part of its biggest campaign to date.

The grocer has now invested£175 million in price reductions in the first half of the year. Cuts are across the board on brand and own-brand, food and non-food.

A whole fresh salmon is down from£4.38 a kilo to£2.98, and a Flymo Microlite lawnmower is now£29.97 from£34.91.

Asda trading and marketing director Angela Spindler said: 'This proves that there are no weasel words when it comes to our price cuts. We promised deep cuts on the best-loved brands. That is what we have delivered and there is more to come.'

A Tesco spokesman countered this, and said: 'They (Asda) are trying to catch up with us because we are well into our second billion (pounds) of price cuts (since 1996). We kicked off the year with£70 million of price cuts and you can expect more shortly.'

Morrisons is to invest between£450 million and£500 million this year to bring Safeway prices in line with its own. Meanwhile, Sainsbury's is expected to open its war chest in summer.

Retail Knowledge Bank research director Robert Clark said: 'Asda has deep pockets and is a lean, mean machine, and Tesco has the strength to match them. The squeeze will be on Sainsbury's.'