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Edinburgh Live
Edinburgh Live
World
Katie Williams

Tesco bosses issue warning to all customers over food prices as 'worst is yet to come'

Tesco bosses have issued a warning to customers over rising food prices.

The chairman of Tesco, John Allan, has said "the worst is yet to come" as the UK is facing a cost of living crisis.

The surge of energy prices, food prices and national insurance contributions will be having an impact on millions of households over the UK.

READ MORE- West Lothian B&B, run by mum and daughter, to star on Channel 4's Four in a Bed

Most recently, it has also been confirmed that council tax in Edinburgh is rising and the same is expected to happen in other local authorities.

The supermarket giant boss appeared on BBC's Sunday Morning programme ahead of a potential five percent increases of food prices in Spring.

He said: "Food is a relatively small part of household spending, it's only about nine percent, that figure has halved in the last half century.

"But of course, it's a bigger proportion for those on the lowest incomes. So I think we're concerned particularly about what can we do to try to protect those who are hardest up, who are going to suffer most from that?

"And in some ways, the worst is still to come because although food price inflation in Tesco over the last quarter was only 1 percent, we are impacted by rising energy prices; our suppliers are impacted by rising energy prices.

"So the likelihood is that that inflation trigger will rise but we're doing all we can to offset it."

This comes after the Governor of the Bank of England, Andrew Bailey, warns that inflation could hit 7.25 percent by April and is unlikely to fall back to normal levels for two years.

The Bank raised interest rates to 0.5 percent on Thursday last week with further rises expected.

Allan added: "I predicted last autumn that food prices by the spring might be rising about 5 percent.

"I sincerely believe that it's not going to be any more than that, it might even be slightly less, but that's the sort of number we're talking about.

"But of course five percent, if you're spending - as some of the least well-off families are spending - 15 percent of your household income, is significant.

"It troubles us and I'm sure troubles many people that people may have to struggle to choose between heating their homes and feeding their families and that's clearly not a situation that any of us should tolerate."

He added that fuel prices are "unlikely to come down very quickly".

Mr Allan continued: "There has been a huge surge in fuel prices in the last year. And I think our hope is that they will now stabilised and ultimately come down but they're unlikely to come down very quickly, I think."

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