After two months of being undercut by Asda on the price of milk and bananas, Tesco has lowered the price of both to match its rival's.

This week, it reduced its four-pint bottles of own-­label skimmed, semi-skimmed and whole milk by 30p to £1.25 and cut the price of 1kg of loose bananas by 10p to 77p the same prices that Asda has been selling them at since last year [BrandView.co.uk].

As The Grocer went to press, Sainsbury's, Morrisons and Waitrose were still selling milk at £1.55 and bananas for 87p.

Asda continues to be the cheapest for organic milk, having cut its base price for a four-pint bottle of organic semi-skimmed milk by 10% to £1.55 in mid-January.

The big four and Waitrose are all running 2-for-£3 ­offers on four-pint bottles of organic milk.

Tesco's cuts are the latest in the so-called price war on staple products, which Asda kicked off last summer when it reduced the price of four-pint bottles of milk from £1.53 to £1.25. The move was quickly followed by similar ­reductions by each of its big-four rivals.

Asda cut the price of its bananas from 67p to 55p/kg in September, having already reduced the price from 97p to 85p/kg at the end of July and from 85p to 74p/kg at the beginning of August.