Sainsbury’s chief says grocery inflation not as bad as feared so far

Sainsbury’s said it had its ‘biggest ever’ week on ice-cream, pizza and salads last week. Photograph: Bloomberg/Getty Images View image in fullscreen Sainsbury’s said it had its ‘biggest ever’ week on ice-cream, pizza and salads last week. Photograph: Bloomberg/Getty Images Sainsbury’s chief says grocery inflation not as bad as feared so far Supermarket has lifted sales with Aldi price match, and has benefited from hot weather and World Cup matches Business live – latest updates Grocery inflation in the UK has not been as bad as feared so far, the boss of Sainsbury’s has said, but “pressure in the system” remains as the industry hopes for a swift resolution to the Middle East conflict. Simon Roberts, the chief executive of the UK’s second-largest supermarket, said it was still early in the year and there was “still uncertainty where inflation will go”, but suggested it could come in well below the Food and Drink Federation’s initial prediction of at least 9% by December . Despite warnings of a likely jump in the pace of price driven by the strait of Hormuz blockade of energy and fertiliser shipping, food inflation has actually eased in recent months . Ocado boss Tim Steiner’s near £100m in pay raises ‘serious concerns’ Read more Shop price inflation was unchanged in June, the British Retail Consortium said on Tuesday, remaining at 1.2% year on year – the same level as in May. Sainsbury’s, which also owns Habitat and Argos, said it had gained market share as shoppers continued to seek ways to save money amid pressure on household budgets. Sales rose 2.7% to £9.1bn in the three months to 20 June, with grocery sales up by a better than expected 3.6% as Sainsbury’s matched prices on hundreds of products to those at its cut-price rival Aldi. Sales at Argos fell 0.5%, despite the amount of products being sold increasing by 2.2%, due to discounting and a shift towards lower-priced items amid lacklustre consumer sentiment caused by the Middle East conflict and concern about inflation and jobs. Roberts said customers were being “much more cautious” on non-food purchases and the market was “more subdued and more promotional” than on groceries. While the volume of products sold rose – with large TVs, fans, toys and paddling pools doing particularly well during the warm weather in May and before the World Cup – sales of expensive items such as furniture struggled. He said Sainsbury’s would like to see the likely next prime minister, Andy Burnham, introduce “policies that can support confidence and optimism” among shoppers, reiterating calls for action to reduce the cost of energy for food producers and support to increase hiring, especially of young people. “We have seen a lot of regulatory cost coming to this industry in the last couple of years and I would like to see a real focus on growth,” Roberts said. Sainsbury’s had enjoyed a “really exceptional week” during the hot weather and World Cup fixtures for England and Scotland last week, he added, with “a