Life tough for millions of households, says Sainsbury's boss

Shoppers are "watching every penny and every pound", the boss of Sainsbury's has warned, as the supermarket revealed its profits had been hit by the rising cost of living.

Simon Roberts said the grocer got "how tough it is for millions of households" and was trying to keep prices low.

Food prices are rising at their fastest rate in 42 years as the cost-of-living crisis squeezes household budgets.

People are also struggling with higher energy bills and rising interest rates.

Sainsbury's said sales across the business had climbed 4.4% to £16.4bn in the six months ending in September.

But the UK's second largest supermarket also revealed a dip in profits as the business absorbed some of the impact of rising food costs and put up wages.

Mr Roberts said: "We will have invested more than £500m by March 2023 in keeping prices lower by cutting our costs... meaning we have more firepower to battle inflation."

The grocer's profits also reflect a return to normal shopping habits since the pandemic lockdowns ended.

Experts say the rise in the cost of groceries has been accelerated by the war in Ukraine, which has disrupted grain, oil and fertiliser supplies from the region.

Food and drink prices have also been affected by the recent weakness in the pound, which has made imported products and ingredients more expensive.

Earlier this month, a BBC survey uncovered growing concern about the squeeze on finances. Some 85% of those asked are now worried about the rising cost of living, up from 69% in a similar poll in January.