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.