BRITAIN’S biggest retailer, supermarket group Tesco, reported today a halving of annual net profit as soaring inflation hiked costs and reduced the amount it sold.

Profit after tax dropped to £745 million (RM4.1 billion) in the 12 months to the end of February, Tesco said in a statement.

Chief executive Ken Murphy said the group experienced “unprecedented levels of inflation in the prices” it paid suppliers.

The supermarket added that sales volumes dropped year-on-year. 

This was offset by Tesco hiking prices of products, helping revenue jump 7% to £65.8 billion.

Inflation soared worldwide last year, pulled higher especially by surging food and energy prices as Russia’s invasion of Ukraine hit supplies.

Prices reached the highest levels in decades also as economies reopened from pandemic lockdowns.

British inflation remains elevated at above 10% after a jump in February, while official data yesterday showed the rate of price increases slowing in the United States. – AFP, April 13, 2023.