Morrisons chief executive Marc Bolland has claimed that food prices could be set to fall.
He said factors such as falling oil prices would lower production costs and he claimed that Morrisons’ food processing operations mean that it can undercut some of its competitors.
The retailer announced healthy profits for the first six months of the year yesterday.
Bolland said: “The momentum of the first half has set us up well to achieve for the full year, despite the challenging comparatives as we approach Christmas.”
He claimed that falling commodity costs will filter through in the coming months, just as inflation hits its peak at the end of the year.
He added: “We think it will ease over the winter. The benefits are there, they are coming through with a certain time lag.”
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