Sainsbury's chief executive Simon Roberts has warned that further inflationary pressure is likely to emerge through the supply chain, driven by uncertainty surrounding the ongoing conflict in the Middle East.
The supermarket giant reported that while recent trading has been "encouraging," consumer caution remains evident, suggesting shoppers are still sensitive to price levels despite the positive sales trend.
Roberts highlighted that the geopolitical situation poses a direct risk to cost structures, with potential disruptions threatening to push prices higher for consumers.
This warning arrives as the UK economy grapples with the broader aftershocks of the protracted US-Iran conflict, which analysts suggest is beginning to materialize across domestic markets.
The prospect of renewed cost-push inflation complicates the outlook for the Bank of England, which has been monitoring whether price pressures are truly subsiding.
The comment from Sainsbury's leadership adds weight to growing concerns that fuel-related inflation is set to extend beyond energy bills and into food prices.