Food inflation is starting to fall after months of soaring prices, Sainsbury’s stated today (4) as it announced its latest financial results.
In its latest financial results, just released, Sainsbury’s reports that its like-for-like sales (excluding fuel) jumped by 9.8 per cent in the 16 weeks to 24 June. Sales at its grocery arm were “strong”, up 11 per cent, Sainsbury’s reports.
Simon Roberts, the chief executive of J Sainsbury, says the worst of the food price squeeze is over.
“We are putting all of our energy and focus into battling inflation so that customers get the very best prices when they shop with us, particularly now as household budgets are under more pressure than ever,” Roberts explains.
“Food inflation is starting to fall and we are fully committed to passing on savings to our customers. Since March, we have invested over £60m in lowering prices, leading on price cuts across more than 120 essentials like bread, butter, milk, pasta, chicken and toilet roll.
Roberts adds that the prices on Sainsbury’s top 100 selling products are now lower than they were in March, “against a market where prices have gone up”.
Customers have also saved over £90m since we launched Nectar Prices in April, he says, adding that “we’re offering great value through Stamford Street, our entry-price range and through our biggest ever Aldi Price Match campaign. All of this is underpinned by the continued delivery of our cost-saving programmes”.
Sainsbury’s also reports that its general merchandise sales have risen by 4 per cent, but clothing sales were down 3.7 per cent.
Although global food commodity prices have been dropping in recent months, having surged after the Ukraine invasion, supermarkets and food producers have been criticised for being too slow to pass them on.