Tesco will be posting full-year results on Thursday with much of the talk surrounding grocers still around food inflation.
Food inflation continues to weigh heavily on consumers, with data from the Office for National Statistics showing inflation was at 18.2% in February, up from 16.8% in January.
Grocers such as Tesco have been criticised for failing to protect consumers by not absorbing sky-high costs, especially as wholesale prices have been on the decline.
Thursday’s results should also provide key information for the outlook of inflation, with some players within the broader retail sector anticipating easing margin pressures.
Topps Tiles, for example, in its first-half trading update said it expects to see gross margins “increase sequentially’ in the second half.
In its post-Christmas trading update, Tesco held its full-year profit guidance and reassured investors it expects adjusted operating profit of between £2.4bn and £2.5bn.