Major supermarkets have announced a new round of price cuts in a bid to lure cash-strapped consumers.

Both Asda and Tesco have promised lower prices to outflank their rivals.

Asda unveiled a range of goods, including two pints of milk for sale at 50p.

The retailer said customers would be able to buy milk at its cheapest price since 2001 following increases of about 21 per cent in the last year.

Other 50p products include bread and butter, eggs, meat and vegetables.

The price cuts are in effect from Friday to Sunday.

Suppliers would not be affected by the reductions, Asda said.

Tesco also cut the cost of 18,000 products in its biggest weekly promotion yet.

The retailer said it was reducing the price of a range of everyday goods that would be on promotion, from bread, sausages and pizzas to Back to School uniforms and homewares.

Tesco said the move meant it had cut £620 million from prices since January.

Soaring food prices have pushed the official inflation rate up from 3.8 per cent to 4.4 per cent in July - a 16-year high.

Increases in the price of meat products, milk, cheese and eggs have contributed to a steep climb in the cost of living.

The average grocery bill for a typical family has climbed by more than a quarter to £127 since last summer.

The fierce price wars among retailers follows the rising popularity of discount stores like Aldi and Lidl.

© Independent Television News Limited 2009. All rights reserved.