Sainsbury’s profits have tumbled as it kept down prices to compete with Aldi and Lidl (The Daily Mail). Sainsbury’s has claimed to be passing on rising costs to shoppers at a slower rate than its competitors, saying its decision is partly responsible for a dip in first-half profits (Sky News). Sainsbury’s claims it is raising prices at a slower pace than its rivals, as the boss said he understands “how tough it is for millions of households” (The Telegraph).

Shoppers are “watching every penny and every pound”, the boss of Sainsbury’s has warned, as the supermarket revealed its profits had been hit by the rising cost of living. (The BBC)

Households “feeling the squeeze” are shopping earlier for Christmas to spread the cost and have made a shift to dining at home rather than at restaurants, according to Sainsbury’s (The Guardian). Shoppers are spreading out their Christmas spending and buying energy-saving products such as electric blankets as the cost of living rises, according to the boss of Sainsbury’s (The Times £).

Supermarket chain Sainsbury’s set up a £500mn loan facility for its pension scheme at the height of the gilt market crisis that followed the Truss government’s “mini” Budget in September. (The Financial Times £)

The Sainsbury’s pension action “underlines how close the UK came to a proper financial crisis in which corporate coffers would have had to be raided for emergency pension loans,” says The Guardian’s Nils Pratley. “Sainsbury’s, one strongly suspects, will not have been the only corporate sponsor to make a loan offer to its pension fund the full tale of that frantic fortnight is yet to emerge.” (The Guardian)

The Bank of England has warned the UK risked being plunged into the longest recession in 100 years after it pushed up the cost of borrowing to 3% in the biggest single interest rate rise since 1989 (The Guardian). The Bank of England has warned the UK is facing its longest recession since records began, as it raised interest rates by the most in 33 years (The BBC). Britain is threatened with the longest recession on record, the Bank of England warned as it forecast that inflation will remain in double digits until spring (The Telegraph).

Households are facing the worst squeeze on real incomes, which is the value of earnings after adjusting for inflation, since the Second World War (The Times £). The Bank warned that the UK could face a protracted contraction in the coming years, with high inflation and the unemployment rate climbing to 6.5% - the highest since the financial crisis (Sky News).

The Christmas ad season has kicked off with big retailers including Sainsbury’s and Marks & Spencer altering their plans as a consequence of the cost of living crisis. (The Guardian)

The FT talks of the “good luck that’s still needed to avoid a world food crisis” following Russia’s invasion of Ukraine. Official efforts to increase grain exports despite the war in Ukraine have only had a marginal impact. (The Financial Times £)

Howard Schultz was supposed to be in the White House by now, healing America’s divisions with empathetic concern and entrepreneurial practicality. Instead, four years after retiring and three since his abortive presidential campaign, he is back for a third shift as Starbucks’ chief executive and facing a daunting set of challenges. (The Financial Times £)