Driver shortage will raise prices, warns Morrisons

Supermarket chain Morrisons has said it expects the UK's lorry driver shortage to stoke inflation during the rest of this year.

It said the lack of drivers, plus higher freight charges and commodity prices, could lead to higher prices.

However, it said it would seek to mitigate those and other potential cost increases, such as any incurred in maintaining good product availability.

Morrisons and its rivals have seen gaps on shelves due to the driver shortage.

Last month, it joined a growing chorus in the food and drink industry calling for government help to recruit lorry drivers.

Boss David Potts indicated HGV drivers should be eligible for Skilled Worker visas, allowing them to work in the UK.

The firm's latest comments came as it reported first-half results, showing a profit before tax and exceptional items of £105m in the six months to 1 August, down from £167m in the same period last year.

Morrisons is currently at the centre of a takeover battle between two US private equity firms.

In its results statement, it reiterated that it had received offers for the company from Clayton, Dubilier & Rice (CD&R) and Fortress and was recommending CD&R's offer of 285p per share.

Shareholders will be asked to approve this offer at a meeting to be held in or around the week beginning 18 October, it added.