Runaway food costs are finally slowing at supermarkets, Tesco chief says
- Tesco chief executive Ken Murphy said higher food prices might be easing
- Read more: Families facing extra £2,900 a year on their mortgage due to rates
Supermarket price rises are beginning to slow, according to the boss of Tesco.
Food inflation – running at 19.1 per cent – has been slower to fall in the UK than most developed economies, blamed on expensive imports.
But Tesco chief executive Ken Murphy said the business was seeing ‘encouraging early signs that inflation is starting to ease’.
Tesco said there had been reductions in the price of some essentials such as milk, bread and pasta over the past month. However, this does not mean the average cost of filling a trolley is getting any cheaper.
A study from Which? this week found a fall in shopper confidence in big supermarkets, with customers suspicious that they have kept prices higher than is justified.
Ken Murphy (pictured) said the Government had not raised the idea of voluntary price caps – dismissed as a stunt by industry insiders – with Tesco
Tesco chief executive Ken Murphy said the business was seeing ‘encouraging early signs that inflation is starting to ease’ (file image)
Shoppers and farmers complain that they have been left to carry the burden of the cost of living crunch while supermarkets protect profits.
Chancellor Jeremy Hunt has mooted a voluntary price cap on food essentials, but Mr Murphy said the Government had not raised this idea – dismissed as a stunt by industry insiders – with Tesco.
He said: ‘There are encouraging early signs that inflation is starting to ease across the market and we will keep working tirelessly to ensure customers receive the best possible value at Tesco.’
It came as Tesco reported annual profits of £2.6billion last year, with a like-for-like sales increase of 8.2 per cent against the same period last year.
Last week, Which? reported the company to the competition watchdog over concerns it is failing to clearly display prices in its Clubcard loyalty scheme.
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