Supermarket Morrisons has announced a new round of price cuts in a war between UK supermarkets in the face of competition from discounters such as Aldi and Lidl.

From today, the company will drop the price of 135 products by an average 14% as part of a campaign to win customers in a still fragile market. In March, Morrisons said that it would be spending £1 billion on a campaign to lower prices, develop a loyalty scheme and invest in its own brand lines over three years.