• With Christmas set to cost UK consumers £383m more, ASDA invests £150m into lowering prices for its customers
• 2,500 rollbacks across its entire range

ASDA today (Wednesday 24th October 2007) reacted swiftly to research commissioned on the cost of Christmas, by announcing it was slashing £150m off the price of festive food, George clothing, toys, gifts, and electrical goods in stores throughout the UK.   

The supermarket's aggressive round of price cuts is its largest ever investment at this time of year, and will be warmly welcomed by hard pressed shoppers.  Christmas pudding will cost just 98 pence and the price of a dozen mince pies will fall to just £1. 

According to leading economists cebr, Christmas is set to cost the UK public £11.8 billion, a rise of £383m compared to last year. cebr calculates the typical British family will fork out £448 on Christmas food, drink, toys, and gifts, in 2007. 

Andy Bond, ASDA CEO said: “We’re lowering the cost of Christmas for millions of customers all over the UK, saving everyone money when they need it the most. 

"Our research shows that the family budget is being stretched to the limit. That's why we've invested £150m in our biggest ever set of festive price cuts."  

 Douglas McWilliams Chief Economist from the cebr said: "Cheap consumer goods from the Far East meant that the cost of Christmas fell every year from 2000 to 2005. But this year, like last, Christmas will be a little more expensive. This is for two reasons - first the fall in prices of goods from the East will be less than before, and second, market led food and drink price inflation will make festive eating and drinking more expensive."  

The cebr report also highlights that falling prices of audio-visual and photographic equipment will soften the burden of some inflationary pressure and 'price wars among large food retailers will contribute to more subdued price rises'.

Douglas added: "Other factors are also having a bearing, including the international banking crisis, a weakening economy, and rising unemployment, all of which is leading to incomes being stretched. Many families will be squeezed from both sides as they are affected by the weaker economy while their cost of living has risen." 

As a result ASDA has introduced deep rollbacks across its entire range of products, including famous brands like Coke, Hellmans Mayonnaise and Walkers Crisps. The supermarket is also slashing the price of big electrical items like its 37 inch TV, down from £849 last year to £479 this year, and essential games and toys for Christmas like Cluedo and Monopoly both reduced to just £10 each.  

The Christmas office party season will also be easier on the pocket this year with ASDA selling a full tuxedo (jacket and trousers) for just £49. 

Andy Bond added: "We want our customers to be able to get everything they need without breaking the bank. By cutting prices earlier than previous years, we are helping them save more money by spreading the cost of Christmas."  

Every year for the last ten years ASDA has won The Grocer magazine lowest priced supermarket award. It is committed to maintaining that record by delivering the best possible prices week in week out. The latest price investment builds on a decade of ASDA lowering prices. 

The average ASDA shopper’s inflation busting basket is now 17% lower in real terms than in 1997 as a result of ten years of price cuts.