Sales in Asda's budget ranges lifted the UK's second biggest grocer as customers focused on bargains.

Asda - which is part of the Wal-Mart group - said the jump for its Smartprice and Extra Special products helped boost underlying sales growth during the second quarter to 6 per cent, compared with 5 per cent for the first quarter.

Surveys have shown the lower-priced segment of the supermarket sector has attracted more customers in recent months as households look to offset rising fuel, energy and food costs.

Asda's sales grew by an industry-beating 9 per cent during the 12 weeks to July 13.

No frills rivals such as Aldi and Lidl performed even better, enjoying year-on year growth of 19.5 per cent and 14.3 per cent respectively.

Asda's chief financial officer Judith McKenna said the retailer's low prices were "undoubtedly more important than ever".

The retailer's figures contributed to an in-line second quarter performance from its parent group Wal-Mart Stores, the world's biggest retailer.

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