Tesco chief executive Sir Terry Leahy has said that food price inflation has reached its peak and this may help out consumers.
Speaking to Reuters after the supermarket posted a 10% rise in profits during the first half of the year, Leahy urged the Bank of England to lower interest rates.
He suggested that “shoppers will notice the difference” if food prices are reduced in the coming months.
And Leahy also admitted that Tesco has lost a number of customers to the discount retailers as the credit crunch eats into people’s finances.
“It’s important that we get banks back to doing their job, which is to provide liquidity for the real economy and lending at sensible prices,” he said.
