Tesco starts new supermarket price war

Tesco has upped the stakes in the supermarket price war by announcing a huge round of cuts.

Tesco says the savings on 1,500 food and non-food items, to be in place by tomorrow, are worth up to stg£70m to customers.

Sainsbury's, the chain's main rival, claims it has a "long-term approach" to low prices and shoppers will not fall for Tesco's ploy.

According to Tesco director John Gildersleeve, a total of 15,000 prices are now cheaper at Tesco than they were in January last year.

He commented: "Our determination to cut prices, and keep them low, is helping keep a lid on inflation."

The latest campaign is in addition to the series of price cuts in the last year totalling over stg£200m.

A Sainsbury's spokesman said it had a wide selection of special offers reflecting its "constant, long-term approach to cutting prices".

He added: "Price is really important but it's just one element of the shopping experience. We believe our customers appreciate quality and service as just as important."

The spokeswoman said there were at least 3,000 prices cheaper at Sainsbury's than this time last year and that it is running offers including 50 buy-one-get-one free deals.