The boss of British retailer Tesco, Ken Murphy, said on Thursday that inflation may have not peaked "just yet," adding that he hoped it would come down by the middle of this year.

"We're not sure it's peaked just yet," Murphy said in response to a question on inflation. "We would hope that by the middle of the year it will have peaked and then we will see it come down the other side."

The company reported its Christmas trading update earlier in the day. (Reporting by James Davey, writing by Muvija M, editing by Paul Sandle)