The UK’s largest supermarket says there “encouraging” indications that price rises are slowing.
Image source, PA MediaTesco’s boss has said there are “encouraging early signs” that price rises are starting to slow as the retail giant reported higher sales.
The supermarket said that in the three months to the end of May, UK sales were up 9% from a year earlier to £10.8bn.
Households have been facing soaring prices, with food inflation hitting 19.1% in the year to April.
Tesco boss Ken Murphy said he was “very conscious” of the cost of living pressures facing shoppers.
But he added: “There are encouraging early signs that inflation is starting to ease across the market.”
Charles Allen, a retail analyst at Bloomberg Intelligence, told the BBC’s Today programme that inflation was a “huge factor” in Tesco’s latest figures.
“The top commodity prices are starting to fall but it’s important to remember that lower inflation doesn’t mean deflation. It doesn’t mean prices dropping, it just means prices going up less fast.”
Supermarkets have been criticised recently over pricing and profits. Last month, Sainsbury’s hit back after accusations of “greedflation” or bolstering profits, during the cost of living crisis.
The UK’s competition watchdog, the Competition and Markets Authority, is investigating supermarkets over high food and fuel prices.