Families still worried about cost of living despite lower food price rises, says supermarket boss

Families still worried about cost of living despite lower food price rises, says supermarket boss Sainsbury's chief executive says food inflation "not coming through as significantly as some expected" Food prices are rising less than feared but many families are still worried, says the boss of supermarket giant Sainsbury’s. Simon Roberts said: “There are still concerns about where food inflation will go. It will take until the late summer to see the level at which that all feeds through, especially in fresh food. But it is not coming through as significantly as some expected, although it is still early in the year.” His comments came amid warnings in the immediate aftermath of the Middle East war that food prices could surge due to a leap in energy and fertiliser costs, both impacted by Iran’s closure of the key Strait of Hormuz. The Institute of Grocery Distribution warned in March that food price inflation could reach 8% by June. It actually fell from 3.7% to 3% in April and to 2.2% in May. The signs are that the peak in food prices won’t be as bad as feared and the IGD now reckons food inflation will hit a high of 5.5% later this year. According to estimates, households with children will still need to find around £203 extra for food and drink this year. Inflation remained unchanged at 2.8% in May despite expectations that it was set to rise. The majority of economists had predicted that inflation would rise to 3% last month. The Office for National Statistics said inflation held steady as higher transport costs were offset by a fall in food price rises. Sainsbury's chief executive Mr Roberts said: “Customers are very concerned about the cost of living.” However, he also revealed the start of the World Cup and last week’s heatwave had boosted people’s moods. “We look at customer sentiment and there was a tick-up last week with the weather and the World Cup and a whole bunch of things coming together,” he said. “Last week was really exceptional.” The heatwave led to record sales of pizza and ice cream, he revealed, with a further boost expected next week with the return of scorching weather. It came as Mr Roberts urged Andy Burnham to ease the pressure on business if he becomes Prime Minister, as expected. “The grocery industry and the everyday economy has a really big role to play in accelerating growth,” he said.“ We want policies that will help build optimism and make consumers feel more confident.” Sainsbury’s cheered an “encouraging start” to its financial year, with the UK’s second largest supermarket chain revealing that total retail sales, excluding fuel, grew by 2.7% to £9.15billion in the 16 weeks to June 20, compared with the same period a year earlier. This was buoyed by stronger growth in its core grocery business, while general merchandise - which includes clothing brand Tu - and its Argos business both reported declines.