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Price cuts hold back Tesco UK growth

Christmas and New Year sales at British supermarket chain Tesco rose by 11%, the company said this morning.

International sales, which include the company's supermarkets in the Republic, surged by 31%, but UK like-for-like sales grew by only 4.6%, failing to meet analysts' expectations of 6%.

Tesco said prices of petrol and food in the UK had fallen.