Britain's biggest supermarkets have slashed their prices by more than £700 million in recent weeks in an attempt to encourage shoppers in the grip of the credit crisis to spend money.

Analysts predict the price war could develop into a full-scale battle between the biggest chains, the like of which has not been seen since 1999, when US giant Wal-Mart entered the UK by buying Asda.

One chief executive has dubbed it "the most competitive price war in 25 years'".

Shoppers, buffeted by record food prices and soaring inflation, should ultimately benefit if they are prepared to shop around and pick up the bargains, shopping experts said. ... Read full article