UK supermarket chain Tesco has announced that it is cutting £80m (US$128.9m) from the price of more than 1,000 items.
Products included in the price cuts include fresh pasta, bottled water, oriental sauces, quiches, pizzas, crisps, milkshakes, skin and hair care products, razor blades and toothpaste.
Meanwhile, rival supermarket chain Asda has announced it is to cut some prices in its George clothing range.
The news has sparked speculation that a price war may be on the cards. However, Kevin Hawkins, a director of UK supermarket chain Safeway told the BBC that he views the reductions with some scepticism.
“We have these so-called price wars about three times a year. Typically in the two or three months leading up to one of these initiatives, prices are increased,” Hawkins was quoted as saying by BBC Online. He also warned that while attention was focused on price reductions, the cost of other goods may be increased.