Tesco sees profits halve to £1bn amid higher costs

Tesco has reported a jump in yearly sales but profits halved as it grappled with higher costs.

The UK's biggest supermarket said customers had faced "an incredibly tough year" as prices rise at their fastest in 40 years.

While its sales rose 7% to £66bn, pre-tax profits dropped to £1bn as customers, though making more trips to the supermarket, bought fewer items.But signs of a slowdown in prices are on the way as the retailer lowered the price of milk.