The UK's second-largest grocery group has joined market leader Tesco in declaring that food inflation is starting to ease, but there's a long way yet to go for both retailers and consumers.

That sales increased at Sainsbury's by almost 10% during the three months to June 24 is no great surprise given that the period included the Easter break, an extended string of bank holidays, and a significant spell of warmer weather. Still, it is a strong set of results in a trying economic climate.

Most importantly from Sainsbury's point of view was the fact that grocery sales increased by 11% thanks to higher volumes, rather than just inflationary pressure on prices. Chief executive Simon Roberts noted that shoppers are putting more items in their baskets as the group has ploughed some £60m since March into cutting the price of basics such as bread, milk, pasta and toilet roll.

READ MORE: Food inflation is ‘starting to fall’, Sainsbury’s says

This comes amid accusations of profiteering levelled against the grocery giants that put 99% of food on the nation's tables. The sector has come under public pressure to do more to alleviate the cost-of-living crisis with claims that high inflation is being used as an excuse to raise prices more than necessary.

The competition watchdog is currently investigating whether supermarkets are keeping prices higher than they need to be, while a separate probe into fuel prices found earlier this week that the big grocery chains increased profit margins at the pumps durng the pandemic.

Mr Roberts declined to comment on Sainsbury's profit margins on fuel, but indicated that any gains made were being passed on to shoppers by keeping food prices down.

READ MORE: Sainsbury's reveals cost of keeping food prices in check

Sainsbury's has lost almost 1% of its grocery market share since the start of the pandemic, mostly to the German discounters Aldi and Lidl. That it is now regaining some of that through special price cuts for its loyalty card members, and via the expansion of its value range of Stamford Street products, is good news for investors.

However, it is too early yet to declare victory for Sainsbury's or its customers. 

Cost pressures are easing but remain intense, with Mr Roberts predicting that relatively high inflation will persist until at least the end of this year as higher wages are now "locked in" for both retailers and their suppliers. The competitive environment is also heating up with Aldi, Lidl and Amazon all looking to expand their presence in the grocery space.

Higher sales volumes will therefore struggle in the translation into increased profits in the short to medium-term. But for now, Sainsbury's is holding its own.