Ocado sees shoppers continue cutting back as food inflation yet to peak

The group’s retail arm – run as a joint venture with Marks & Spencer – delivered a 3.4% rise in revenues to £583.7 million in its first quarter.

Online grocer Ocado has said its retail business remains on track to return to profit as it posted a rise in first quarter sales despite ongoing ‘challenging’ trading (Doug Peters/PA) (PA Archive)

Online grocer Ocado has said it is yet to see an end to soaring food prices, with customers continuing to rein in spending amid the cost crisis.

The boss of its retail arm, Hannah Gibson, said food price inflation remains at a painful level, with shoppers cutting back their weekly spend and opting for more chilled and frozen food to try and manage costs.

She said some commodity prices were beginning to come down, but that “overall we are still seeing high inflation”.