Tesco sees early signs inflation is starting to ease

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Tesco sees early signs inflation is starting to ease
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The UK's largest supermarket says there are 'encouraging' indications that price rises are slowing.

Earlier this week, the governor of the Bank of England, who is trying to reduce inflation to its target of 2%, said inflation was taking "a lot longer than expected" to come down.

Tesco's Mr Murphy said he believed the Bank of England had been unfair in blaming supermarkets for inflation remaining at a high level.Mr Murphy said the retailer had "led the way" in cutting prices on staple goods such as milk, pasta and cooking oil. "What's important here is the purchasing power of the family," he added. "That's really where we should be focused on improving people's purchasing power so that they can continue to feed their families and live a decent life."three to nine-month lag to see price falls reflected in shops.

Charles Allen, a retail analyst at Bloomberg Intelligence, told the BBC's Today programme that inflation was a "huge factor" in Tesco's latest figures.

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