Tesco sees early signs inflation is starting to ease

Tesco's brag has said determination are "encouraging aboriginal signs" that terms rises are starting to dilatory arsenic the retail elephantine reported higher sales.

The supermarket said that successful the 3 months to the extremity of May, UK income were up 9% from a twelvemonth earlier to £10.8bn.

Households person been facing soaring prices, with nutrient ostentation hitting 19.1% successful the twelvemonth to April.

Tesco brag Ken Murphy said helium was "very conscious" of the outgo of surviving pressures facing shoppers.

But helium added: "There are encouraging aboriginal signs that ostentation is starting to easiness crossed the market."

Charles Allen, a retail expert astatine Bloomberg Intelligence, told the BBC's Today programme that ostentation was a "huge factor" successful Tesco's latest figures.

"The apical commodity prices are starting to autumn but it's important to retrieve that little ostentation doesn't mean deflation. It doesn't mean prices dropping, it conscionable means prices going up little fast."

Supermarkets person been criticised precocious implicit pricing and profits. Last month, Sainsbury's deed backmost aft accusations of "greedflation" oregon bolstering profits, during the outgo of surviving crisis.

The UK's contention watchdog, the Competition and Markets Authority, is investigating supermarkets implicit precocious nutrient and substance prices.