Sainsbury's said food inflation is "starting to fall" as the supermarket group saw sales boosted by bank holidays and warmer weather. The UK's second largest grocery chain also said sales volumes returned to growth last year, with shoppers buying more items despite the intense pressure on rampant food and drink inflation.
Latest official figures from the Office for National Statistics (ONS) show food inflation eased slightly in May but remained at a stubbornly high 18.4%. Sainsbury's chief executive Simon Roberts said price rises are now stalling, with prices on the retailer's 100 most popular products falling over the latest quarter.
Products like bread, butter, milk, pasta and chicken have seen price cuts in recent months as falls in costs further down the supply chain pass through to customers. Nevertheless, it comes amid an ongoing investigation by the UK's competition watchdog into accusations supermarkets are profiteering from higher prices and whether wholesale price reductions are appearing on shelves quickly enough.
