Tesco boss issues warning to all customers over food prices

Tesco chairman John Allan today issued a warning to customers about the continued rise in food prices in the UK – saying the worst is yet to come.

Mr Allan said food prices at Tesco rose just 1% last quarter but were expected to rise 5% by spring, reports The Mirror.

The increases will come at the same time as a rise in national insurance, energy bills, water bills and mortgages and inflation makes everything we buy more expensive.

Mr Allan said the supermarket chain was driving prices down where it could with the cheapest tin of beans now 22p, down from 25p five years ago.

He told the BBC Sunday Morning: “In some ways the worst is yet to come – because although food prices at Tesco in the last quarter were just 1%, we are being hit by rising energy price. Our suppliers are impacted by rising energy prices.

“It is likely that the inflation figure will increase. We are doing everything we can to make up for it. »

He added: “I predicted last fall that food prices by spring could rise by around 5%.

“I sincerely believe that it is not going to be more than that, it could even be a little less.

“But that’s the kind of number we’re talking about. Of course, 5% – if you’re spending, as some of the less well-off families do, 15% of household income – that’s important.

“It bothers us and I’m sure a lot of people are struggling to choose between heating their homes and feeding their families.

“This is clearly not a situation that any of us should tolerate.”

About Mary Moser

Check Also

Liquidity and volatility: deciphering the market jargon

“Liquidity” and “volatility” are constantly tossed about by the financial media and Wall Street as …