Morrisons has warned of pressure on prices due to the lorry driver shortage as it revealed that half-year profits tumbled.

The supermarket chain – which is at the centre of a bidding battle between two US private equity firms – said it expects industry-wide retail price inflation in the coming months as a result of the HGV driver shortage, global commodity price increases and higher haulage costs.

But it said it will seek to reduce the impact of the cost pressures and supply issues to keep its shelves stocked.

Chief executive David Potts said the group had seen price inflation start to come through over the past month, which is set to 'continue for a while'.

This has impacted the price of beef and wheat-based items, he said.

The Morrisons boss added there was pressure on supplies of items such as pet food amid surging pet ownership during the pandemic.