UK retail giant Tesco is investing GBP100m (US$147m) in a combination of permanent price cuts and promotions.

The reductions will take place this month on over 3,000 products including meat, frozen food and bread.

The news follows last week's announcement from arch-rival Asda of its own plans to cut prices on 1,000 products.

Asked whether today's cuts were in response to Asda's reductions, a spokesperson for Tesco told just-food: "This is part of an on going programme to cut prices for customers this year. It started New Years Day with a 3p per litre cut on petrol."

Reductions include 'three for GBP10' on packs of meat, which will continue into the New Year and 'three for GBP3' on Hovis bread.

Tesco said it will start an advertising campaign tomorrow (7 January) in a bid to highlight to consumers which supermarket is the cheapest, comparing groceries from Asda, Morrisons and Sainsbury's.

"This year the cost of shopping will be more important to customers than it has ever been and I believe they deserve to know the truth about who offers them the best value for their hard-earned cash," said Richard Brasher, Tesco commercial and marketing director.

"For years retailers have made claims and counter claims about who is the cheapest. But until now nobody has looked at what shoppers actually put in their shopping baskets to provide a true picture of what customers are really spending."