Aldi said it is cutting the prices of 180 Christmas products for the festive period.
Prices will be reduced by 20% on average and include products like gingerbread mulled wine, stuffing, boxes of Quality Street as well as frozen food ranges.
The £12 million investment into lowering prices is part of a wider scheme to ramp up sales during the winter period.
Aldi has also continued the ‘Christmas price lock’ scheme, which keeps prices of select items the same as last year.
Items that are part of the price lock include whole turkey crowns, pigs in blankets and Christmas puddings.
Julie Ashfield, managing director of buying at Aldi UK, said: “This latest investment is part of our continued efforts to make great quality food affordable for all, from party food treats to iconic Christmas essentials.
“We want everyone to be able to enjoy the festive season, so we’re doing all we can to keep our prices low this Christmas – just as we always do.”
Aldi will be hoping the price cuts can help it regain its crown as the cheapest supermarket in the UK after Lidl knocked it off the podium after it had been there for 16 months.
The German retailer is currently locked in a High Court dispute with Thatchers after the brewer alleged the discount retailer had infringed on its Cloudy Lemon Cider trademark.