The price war continues, as Asda and Sainsbury’s are to slash the prices of bread as part of new price investments.

Asda is to sell a 400g granary farmhouse loaf at 50p, down from 80p as part of a “biggest ever rollback” of prices. Sainsbury’s will also offer a cut-price loaf, with its 800g JS Sandwich Loaf down to £1 from £1.30

At Asda, the supermarket said it would invest £300m in the first quarter of 2015 to reduce 2,500 prices of what it deems customer favourites, including branded products.

Sainbury’s has invested £150m in prices, cutting 700 products in supermarkets this week.

Barry Williams, chief merchandising officer for food at Asda, said: “After a great Christmas with the family, January is the month we all start looking at the size of our waists and our wallets.

“We invest in price year-round, but we’re kicking off January with our Biggest Ever Rollback – spending £300m to bring more value across our stores and online on the products customers buy week in, week out. We’re going further than ever before, rolling back those everyday, can’t-live-without items at a bigger percentage than we’ve ever been able to do previously.

“With hundreds of products at 50p, and even more at 15% less than normal, we’re aiming to make a big difference for families in their weekly shop.”

Meanwhile, Sainsbury’s chief executive Mike Coupe said: “We are investing £150m per year for the next three years in some of our customers’ most popular purchases, with a total of 1,000 prices cut since we announced this investment in November. This will come as welcome news to customers who might be feeling the pinch after Christmas.

"These lower everyday prices are a part of our ongoing commitment to offering our customers great-quality products at great prices.”