Tesco says food inflation falling as it cuts price on 2,500 items

Tesco made an adjusted operating profit of £1.5bn in the first half of the year, up 14% from a year earlier. Photograph: Justin Tallis/AFP/Getty Images

Tesco says food inflation has dropped in the past six months and will continue falling, with the grocer cutting prices on 2,500 products, including bread and broccoli, by an average of 12%.

Its chief executive, Ken Murphy, said customers were becoming more optimistic about the future, with worries over mortgage rates and grocery bills starting to ease. “I’m sure that it will be still challenging for a number of families. But overall, we think the customer is in good shape for this Christmas.”