Food inflation starting to fall, says Sainsbury's as sales rise

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Food inflation is starting to fall, according to Sainsbury's, who said shoppers were putting more items in their baskets as it began to cut prices on some basics.

Article originally published by The Guardian. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.

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04 Jul 2023

Simon Roberts, the chief executive, said the supermarket was “putting all our energy and focus into battling inflation” as household budgets were “under more pressure than ever”.

The UK’s second largest supermarket chain, which also owns Argos, reported that like-for-like sales – those in stores open for more than a year – excluding fuel rose by a better than expected 9.8% in the 16 weeks to 24 June, partly thanks to an increase in the number of items sold, reversing a trend of shoppers cutting back.

Grocery sales jumped 11% while general merchandise such as household goods grew by 4%, including a 5.1% rise at Argos, helped by the warmer weather towards the end of the period and the string of bank holidays. Clothing sales fell 3.7%, held back by the cool start to the spring.

Sainsbury’s said it had put more than £60m into cutting back the prices of basics including bread,