Tesco: Fuel cost hits supermarket spending

The rising cost of petrol is forcing consumers to cut back on supermarket spending, Tesco said today, as the UK’s biggest grocer reported a muted UK performance.

The supermarket giant posted a 0.1% drop in like-for-like sales in the 13 weeks to May 28, a slight improvement on the 0.7% fall in the previous quarter but short of City hopes.