Walmart-owned Asda, the UK retail group, has announced that it is set to cut the price on over 5,000 food items in a move that it says will ease the burden on shoppers in the current economic climate.

Group CEO Andy Bond said that the reduction, applying to every food item in the group's discount Smart Price range, could see Asda customers cutting their weekly shopping bill by up to 50 per cent.

'For the first time ever, we are cutting the price of every single Smart Price food product. By lowering the price entry point to fresh food, value conscious shoppers could slash their weekly shopping bill by more than 50 per cent,' Mr Bond said.

He added that inflation had, he felt, peaked. 'Despite today's record inflation figures I'm confident that food price inflation has peaked and that we are beginning to see the cost of goods stabilise. When I talk to customers they tell me that they are really worried about how to make ends meet and they look to supermarkets to help them.

'That's why I'm determined that as and when cost prices fall it will be Asda which leads the charge and drives down food prices for shoppers not just in the short-term but permanently,' he said.