Tesco shares rise 4% as it raises full-year profit forecast 

Chief executive said he anticipated food inflation would continue to fall in the second half

Tesco chief executive Ken Murphy said he anticipated food inflation, which hit its highest level since 1977 in March at more than 19%, would continue to fall in the second half.

Shares in Tesco rose more than 4% after the supermarket group raised its annual profit forecast, 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 hit its highest level since 1977 in March at more than 19%, would continue to fall in the second half.