Asda plans to trump Tesco's announcement that it is to cut prices on 600 products with 2,000 of its own cuts this month - but industry experts are not impressed.

While Asda is reducing prices across everyday items, Tesco is making cuts on own label products.

But Oriel Securities

analyst Jonathan Pritchard said cuts were no longer an effective marketing tool.

"There will be continued spats on prices - with disproportionate amounts of noise surrounding them - but it does not have the power it once had," he said

"Customers are now pulled in by different levers, environmental and healthy eating concerns currently being the most important."

Sue Grist of consultancy company Egremont also said price cutting had lost its impact, but that it could still have its uses in light of the groceries inquiry.

"The price cuts may help to combat the negative press that will surely come when the Competition Commission report comes out," she said.

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