Overview

• Official data show food and drink inflation rose to 5.1% in August, up from 4.9% in July, reversing recent easing.
• Morrisons reported total sales up 3.5% to £4 billion for the 13 weeks to July 27, down from 4.2% growth in the prior quarter.
• The grocer has reduced prices on about 650 products and is tailoring promotions and loyalty rewards to retain shoppers.
• Management says higher labour, national insurance and packaging-related costs are creating significant headwinds for the business.
• Morrisons delivered £63 million of savings in the quarter, remains on track for £1 billion by end-2026, and says it has repaid £2.7 billion of debt, lowering gross debt to roughly £3.5 billion after refinancing.