Sainsbury’s says trading has been “encouraging” in recent months, but its chief executive warns that further inflationary pressure is likely to come through the supply chain. The company highlights that customers are showing some caution, suggesting shoppers remain sensitive to prices even as conditions improve. The outlet reports focus on the supermarket’s assessment of near-term trading and the outlook for costs, with particular attention to how external pricing pressures could feed through supplier costs to retail prices. While sentiment toward trading is described positively, Sainsbury’s does not suggest that inflation risks have fully eased. Instead, it points to ongoing uncertainty in the flow of prices from upstream suppliers, indicating that additional cost pressures may affect the business in coming periods. Overall, the reports present a cautious but not pessimistic view: recent performance is described as encouraging, yet the company expects supply-chain dynamics to continue influencing the inflation outlook, alongside evidence of cautious consumer behaviour.