UK supermarket major Safeway has stressed that a new report lambasting its high prices is fundamentally flawed.

The research report, compiled by analysts at ABN Amro, claimed that Safeway's prices are on average 12% higher than those at sector rival Asda, the UK arm of US giant Wal-Mart. Safeway maintained however that the methodology behind the report was wrong and that it is actually in line with market leader Tesco when it comes to product pricing.