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Supermarket takeover target Morrisons has warned of pressure on prices due to the lorry driver shortage after posting weaker first-half profits.

The chain, which is the focus of a bidding auction involving two US private equity firms, said it expects industry-wide retail price inflation in the coming months as a result of the driver shortage, global commodity price increases and higher haulage costs.

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

Morrisons warns of price pressures amid driver shortage: profits slide