Andy Bond, chief executive of Asda, was in combative mood late last year when he pondered the prospect of beginning 2008 with a wave of price hikes from suppliers.

"I don't think it is acceptable to say that if you demonstrate [as a supplier] costs have gone up, we will accept increases," he told the Financial Times as his army of buyers prepared for their annual negotiating rounds. "I think our vendors have to do their own restructuring so they are not passing on cost price increases."