The supermarket chain Asda announced tonight that it would sell the final book in the Harry Potter series for a loss-leading price of just £5.

The decision means that Asda is likely to lose some £4 per copy sold of Harry Potter and the Deathly Hallows - of which it has 500,001 copies ready for sale.

But it must be calculating that a £2 million loss - it will review the price when it runs out of stock - is a cheap price to pay for such a visible shot in this summer's supermarket price war.

Asda had been planning to sell the book at £8.87, in line with its main rival, Tesco. That is already less than the normal wholesale price for the book and many independent booksellers, while lamenting price cuts which they say devalue the product, are planning to stock up at the supermarkets rather than the normal wholesalers.

BACKGROUND

• One eye on Harry

• Harry Potter and the Order of the Phoenix - Sunday Times review

• The fifth element

• Actresses are 'insane', says Daniel Radcliffe

• Potter magic at premiere turns out to be illusion

BACKGROUND

• Digital DNA could finger Harry Potter leaker

• Asda starts Harry Potter price war

• Early Potter reviews provoke Rowling outburst

• Harry Potter book leaks on to internet

• Harry Potter and the supermarket sweep

Harry Potter and the Order of the Phoenix

First review of fifth instalment: fails to cause stir of earlier films and feels like a chore

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• Order Harry Potter and the Deathly Hallows online

An Asda spokeswoman said: "It's an investment we're happy to make for our customers."

The announcement follows a battle between Asda and the Harry Potter publisher, Bloomsbury.

On Tuesday, the supermarket chain apologised for putting out a press release accusing Bloomsbury of "blatant profiteering" for setting the recommended retail price for the book at £17.99 pounds.

Bloomsbury had earlier said it was cancelling the supermarket chain’s entire order because Asda owed it money - although it denied that the move was connected to Asda’s accusation of profiteering. Asda later apologized for its allegation, said it had sent money to settle the dispute.

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