It was always going to happen. A supermarket price war has broken out to get market share and build loyalty as the cost-of-living crisis gets a grip. Both Asda and Morrisons kicked off their price war by announcing price cuts costing them millions.

Morrisons said it was launching “one of the biggest price cuts in recent years” with the prices of more than 500 products reduced, as well as a raft of multi-save offers and a new price comparison mechanic urging customers to switch to own label from brands.

Meanwhile, Asda revealed it was investing £73m to tackle the cost of living crisis, including the prices of more than 100 staple products being “dropped and locked” and a 4.5% pay rise for shop floor staff.

The Grocer Magazine reports that – Morrisons, which earlier this month issued a warning that its profits could be hit by rising inflation and the war in Ukraine, said its price cuts would cover 6% of its total volume sales, with products covered including cupboard essentials, fridge staples and frozen food.

Cereals, cooking sauces, chicken and sausages, eggs, baked beans and rice would be reduced by an average of 13%, it said.

Morrisons has cut the price of a quarter of its 235 entry-level products which include ‘Morrisons Savers’, ‘Morrisons Wonky’ in produce and ‘Morrisons Essentials’ in homeware and health & beauty.

Meanwhile, more than 180 products have been included in new multi-save promotions including a ‘buy two for £1.80’ on cereals, a ‘buy two for £3’ on breaded chicken and a ‘buy two for £5’ on ready meals.

The supermarket has announced a new ‘Compare & Save’ campaign which it said would help customers identify savings from swapping branded items for Morrisons own-brand products.

Its cuts will be communicated via a major advertising campaign and point of sale with a Morrisons Savers event taking place in the seasonal aisle until 8 May.

“We know our customers are under real financial pressure at the moment, and we want to play our part in helping them when it comes to the cost of grocery shopping,” said Morrisons CEO David Potts. “These price cuts will have a noticeable and long-term impact on our customers’ budgets and demonstrate our commitment to offering them the best possible value.”

A new ONS report out this week confirmed that a quarter of households were already experiencing trouble paying their bills – and another report recently stated that by the winter something like 47 per cent of all households will be in a similar position – with another million falling straight into poverty.

Asda said its move to support UK households and its staff came with a survey it carried out showing 90% of customers were concerned about inflationary pressures and soaring grocery prices. It is needless to say that a supermarket price war may not be good for company profits but they can’t come early enough for most households.