Tesco, the UK’s largest supermarket chain, is actively working to reduce prices in response to the challenges faced by customers dealing with rising living costs, according to CEO Ken Murphy. He also mentioned that the rate of food price increases is expected to decelerate this year, providing some relief to households.
The chain reported a big jump in profits for the first half of the year as wholesale costs came down.
It said customers were also buying more own-brand products to save money.
Global food prices surged after Russia’s invasion of Ukraine last year, driving up the cost of a weekly shop.
But the pace of price rises, while still very high, has started to ease, with supermarkets cutting the price of some basics like milk, cheese and vegetables.
“We know how challenging it is for many households across the country, as they continue to grapple with ongoing cost of living pressures,” Mr Murphy said.
“We are committed to doing everything we can to drive down food bills.”
Supermarket customers have been switching to own-brand products for the past few years to try to cope with rapidly rising prices.
Tesco noted that customers were indulging in home-based luxuries through the purchase of own-label premium products and were also transitioning from premium retailers to Tesco in order to manage their expenses more effectively.