Sainsbury's boss says food inflation is starting to fall

1 year ago 21
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A shopperImage source, Getty Images

Food prices are not rising as fast as they were, helping to boost the amount customers are buying, the boss of Sainsbury's has said.

Sainsbury's saw an increase of nearly 10% in the value of the goods it sold in April, May and June.

That was partly down to good weather and the Easter, Coronation and bank holidays, said Sainsbury's chief executive Simon Roberts.

But shoppers could also see Sainsbury's had kept its prices down, he said.

Prices for the one hundred most popular grocery items were now lower than they were in March, Mr Roberts said, despite food prices rising more generally.

"We are putting all of our energy and focus into battling inflation," Mr Roberts said, and he added that food inflation was "starting to fall".

Falling food inflation means prices are still rising but at a slower pace than they were.

Clotted cream scones and Coronation jam had also helped to boost sales, he said, as customers continued to "treat themselves at home".

Food prices have risen sharply over the last year, but some wholesale prices have fallen in recent months and supermarkets have been accused of keeping prices higher than they need to be, hitting the pockets of customers.

Sainsbury's has defended its record, saying it has kept prices as low as possible, including cutting prices on staples such as bread, butter, milk and toilet roll.

In the three months April to June, Sainsbury's sold 11% more groceries than the same period last year, when measured by the value of good sold.

But the supermarket chain said customers were also buying more groceries, measured by volume.

Sainsbury's said changes to its Nectar loyalty scheme had also provided "strong momentum". In April, Sainsbury's launched Nectar Prices, a strategy similar to Tesco's Clubcard loyalty scheme, that offers members prices that are lower than the general price offered to non-members.

Nectar Prices would be "further enhanced" later this year, Sainsbury's said.

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