Prices of products such as milk, bread, pasta and oil were coming down Murphy said, calling these early positive indicators, but he did warn that others were still rising, highlighting proteins , sugar, coffee, rice and potatoes.
For the year, Tesco expects prices to rise but with the rate of inflation moderating. Murphy said there was also still pressure from high energy costs and rising wages.A general view of Tesco, in Oldham, Britain, April 13, 2023. REUTERS/Molly Darlington/FILE PHOTO, including the Bank of England, who have called out supermarkets for stubbornly high inflation levels.
The group has benefited from consumers looking to save money by cooking and entertaining at home rather than dining out, with more people treating themselves, helping sales of its top-end "Finest" range., by leveraging its Clubcard loyalty scheme, and by cutting prices when commodity costs do come down.
"Tesco is strengthening its grip on its position as the UK’s top supermarket," said John Moore, senior investment manager at Brewin Dolphin.Reporting by James Davey and Sarah Young; editing by Kate Holton and Jason NeelySarah reports on UK breaking news, with a focus on British companies. She has been a part of the UK bureau for 12 years covering everything from airlines to energy to the royals, politics and sport. She is a keen open water swimmer.