Tesco’s UK sales growth more than halved in its first quarter as the supermarket giant flagged “ongoing uncertainty” for households.

The UK’s largest grocer posted comparable sales growth of 1.8 per cent to £13.4 billion in the three months to the end of May, down from 4.2 per cent in the previous quarter.

The rise was also below City expectations of 2.3 per cent growth, although group sales increased 1 per cent to £16.8 billion.

Tesco was boosted by an 8.9 per cent jump in online sales, while it also rolled out its Aldi Price Match campaign to more than 2,000 Express stores and launched 520 new products during the period.

Chief executive Ken Murphy said: “I am pleased with our progress in the first quarter, with customer satisfaction up strongly and continued sales growth building on the exceptional performance we delivered last year.

“With the conflict in the Middle East creating ongoing uncertainty for many households, we remain focused on giving customers the very best combination of price, quality and service.”

The retailer said growth was held back by softer consumer confidence and higher fuel prices linked to the conflict in the Middle East.

It also faced tough comparatives from last year, when unusually warm and sunny weather boosted food and drink sales.

Sales at Tesco’s Booker wholesale business fell 3.2 per cent as independent retailers and catering customers continued to face challenging high street trading conditions.

Despite the slowdown, Tesco maintained its profit expectations for the year. Analysts expect the supermarket to deliver £3.25 billion in profit this financial year.

Tesco shares fell 2.4 per cent in early trading.