Sainsbury's boosted by return to office but warns of price inflation

Food sales at Sainsbury's have been boosted by a return to the office and fewer people dining out, as the retailer warned of possible price rises as a result of having to pay £140m more next year in national insurance contributions (NICs).

- Jack Simpson

The supermarket chain's pre-tax profits were £356m for the six months to mid-September, up 4.7% on the same period last year, driven by a 5% increase in sales in its grocery business.

However, its chief executive, Simon Roberts, said prices were likely to increase after the rise in NICs in last week's budget.

Sainsbury's said grocery sales were benefiting from changes in customer behaviour, as the return of consumers to the office had led to more people carrying out one large shop each week rather than more frequent visits with smaller purchases. The supermarket chain has also benefited from shoppers opting to dine in for special occasions, rather than going out to restaurants.