Tesco says shoppers are buying more food as inflation eases

Tesco, the UK's largest supermarket chain, has announced strong increases in grocery purchases by UK consumers in the recent quarter as inflationary pressures eased. The retail behemoth experienced a 3.4 percent growth in total retail sales to £15.3 billion in the 13 weeks leading up until May 25, compared to the same period the previous year.

Strikingly, a five percent increase in food sales was witnessed, with a surge in demand for fresh produce playing a crucial role in driving higher sales figures. Interestingly, Tesco Finest products experienced "particularly strong" sales, highlighting increased customer appetite for premium goods amidst ongoing monetary pressure from rising mortgages and rents.

The grocery giant noted an increase in customers switching their allegiance from other high-end UK supermarkets over the quarter. Projecting forward, Tesco forecasts delivering an operating profit of no less than £2.8 billion for the current fiscal year, maintaining its April-set targets.

Tesco CEO Ken Murphy expressed: "We've continued to build momentum in the business, with strong volume growth across the UK, Republic of Ireland and Central Europe supported by easing inflation."

"Our market share reflects this, growing more than at any other time in the past two years, with customers switching to us from other retailers, shopping with us more often and with more in their baskets."

These robust results were announced just prior to the retailer's annual shareholders' meeting.