Tesco announces further increase in inflation

Budrigannews.com – The head of the British retail company Tesco (OTC:), Thursday, Ken Murphy said that inflation may not have reached its “just yet” peak and that he hoped it would fall by the middle of this year.

In response to a question regarding inflation, Murphy stated, “We’re not sure it’s peaked just yet.” We anticipate that it will have reached its peak by the middle of the year, at which point it will reverse course.

In October, consumer price inflation in Britain reached a 41-year high of 11.1%, but it fell to 10.7% in November. By the end of 2023, the Bank of England predicts that it will slow to about 5%.

Retailers, like the majority of other businesses, have been struggling with rising costs while customers are cutting back on spending as a result of rising inflation, which is also hurting earnings.

Nevertheless, Tesco reported strong Christmas sales because, following two years of pandemic curbs, families held larger gatherings during the holiday season and treated themselves at home rather than going out to save money.

“This January, we are focusing more on value because we believe that’s what customers care about. Having said that, Murphy stated, “The performance is pretty good and in line with our expectations.”