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Tesco has been rapped by the advertising watchdog after implying its products are cheaper than rival Asda's.

The Advertising Standards Authority (ASA) received two complaints about the national press adverts, which showed a basket of Tesco goods with the messages "Why pay more at Asda" and "Save a trolley-load of cash at Tesco".

The campaign was misleading, the ASA decided, and has banned it from appearing again.

Although the prices were correct, Tesco included some products which were on offer at the time and this was not made clear enough, the ASA said.

In addition, the ASA believed consumers would be misled into thinking the basket represented a typical shop – but with two brands of laundry detergent, cat food and air fresheners included, the watchdog said this was not the case.

"The comparisons had been made between an unfair selection of goods," the ASA said in a statement.

The prices shown in the ads were not "representative of the savings consumers could generally expect from Tesco", the regulator added.

The 'big four' supermarkets – Tesco, Asda, Morrisons and Sainsbury's – are all promoting their price credentials during the credit crunch, as consumers cut back on their household budget.

Annual food inflation is running at 12 per cent and grocers have been slashing prices on staples such as milk to attract cash-strapped customers.

Analysts report without supermarkets keeping a lid on the full food price rises to maintain market share, current rises in the cost of living would be even higher.