A round of cost-cutting by major supermarkets means a pint of milk can be picked up for as little as 25p.

Both Asda and Tesco have promised to lower prices over coming days in a bid to lure away customers left weary by the credit crunch from cut-price shops such as Lidl and Aldi and back into their stores.

Asda has promised suppliers would not be hit by the reductions after pitching a number of basics at 50p this weekend.

If true, the supermarket itself must be absorbing the costs as milk - priced 50p for two pints - is the cheapest since 2001 following increases of about 21 per cent in the last year.

Asda trading director Darren Blackhurst said: "Customers are telling us this is the time of the month they're really starting to feel the pinch and that's why we're investing in price cuts where they really count, on everyday essentials like milk, bread and butter, meat and vegetables."

Tesco also cut the cost of 18,000 everyday goods that would be on promotion, from bread, sausages and pizzas to Back to School uniforms and homewares.

Tesco commercial director Richard Brasher said: "Rising costs continue to hit customers hard and they are looking to Tesco to help.

"Despite clear inflation in some food products we have worked hard to cut our prices week after week and negotiated some fantastic deals with our suppliers to bring shopping bills down."

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.

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