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Tesco share price falls on back of interest rate fears

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Tesco’s share price dipped today as the UK’s largest retailer spoke of fears over the impact of interest rate rises on future demand.

Tesco's shares were down 3% to 443p this morning despite the group revealing a 10% rise in sales for the 13 weeks to 26 May.

Total UK sales, excluding petrol, grew by 8%. While growth in foods had been strong, growth in non-food sales had "eased in more subdued markets”.

Tesco's international sales rose by a quarter, driven by growth in Asia, where it benefited from progress in China in particular.

Last week Tesco announced £270m of price cuts in the face of intense retail competition.

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