Tesco puts squeeze on suppliers so it can cut grocery prices for customers

As market moves from inflation to deflation', supermarket wants to get ahead of rivals

Tesco is pushing for lower prices from grocery suppliers so it can pass them on to its shoppers, arguing that the tide is turning on inflation and it wants to be able to move faster than rivals.

In a presentation to suppliers at the end of last week, Tesco described the grocery market as moving from inflation to deflation" and made clear that it wanted to get out in front of rival supermarkets by cutting prices more aggressively.