Belfast Telegraph

Rising food prices to boost festive results

By Ravender Sembhy

Soaring food price inflation is expected to have boosted supermarket sales over the festive period, with Lidl and Tesco among the Christmas winners.

City analysts predict that all of the big British grocery groups will book growth in like-for-like seasonal sales when they report to the market in the coming weeks.

Clive Black, of Shore Capital, said: "With food price rises (inflation) in the system, all of the major British supermarket groups are expected by Shore Capital to report positive like-for-like sales for the festive period."

Sterling's collapse following the Brexit vote has driven up inflation which, in moderation, can help supermarkets boost their sales and profit margins.

Grocery inflation hit a four-year high in the run-up to Christmas when it came in at 3.6%, its highest level since 2013, according to data from consumer specialists Kantar Worldpanel.

German discount supermarkets Aldi and Lidl are expected to steal the show, with discount chain B&M also set for a bumper performance.

Belfast Telegraph

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