Tesco Ireland has reported strong performance in the 13 weeks to 27 May, with like for like sales up 7.3% to £714 million.
It said the recently acquired Joyce's chain of supermarkets helped to boost its market share.
Across the UK and Ireland, like for like sales during the period were up 8.8%.
In a trading statement it reported sales of almost £13.8 billion in the period.
CEO Ken Murphy said the group was conscious many of its customers continued to face significant cost-of-living pressures but said some relief could be on the way.
"There are encouraging early signs that inflation is starting to ease across the market," he said.
Tesco is, however, benefiting from consumers looking to save money by cooking and entertaining at home rather than dining out, and from them prioritising essentials over more discretionary purchases.
It is having to balance the increased cost of products from suppliers with the need to be competitive to prevent shoppers switching to discounters Aldi and Lidl, while it is also facing higher staff wage costs.
A scheme to price-match Aldi on about 700 key items has helped as has the popularity of its "Clubcard Prices" loyalty programme that offers reductions to members.
Tesco, whose shares have risen 18% so far in 2023, has said it expects prices to rise in 2023 overall but with the rate of inflation declining through the year.
It has recently reduced the prices of some items which have seen the biggest rises, such as milk, butter, bread, pasta and vegetable oil.
