Tesco raises profit outlook as food inflation falls

As inflation eased, Tesco posted almost £1.4bn (€1.6bn) in sales in the first six months of 2023

Republic of Ireland sales grew by 10% at constant rates in the first half, with a contribution from new stores of 3.1%, which includes the nine Joyce’s stores acquired in June last year and one new superstore in Adamstown.

Tesco raised its annual profit forecast on Wednesday as food inflation eased, adding to momentum ahead of its key Christmas trading period.

After reporting better-than-expected first-half results, Tesco Chief Executive Ken Murphy said he anticipated food inflation, which continues to exceed more than 8% annually in Ireland, would continue to fall in the second half.