Morrisons has reported a second successive quarter of rising sales, as the Big Four retailer continues to cut costs and prices.

Like-for-like sales, excluding fuel, rose 0.7 per cent in the three months to 1 May, compared with a year earlier.

Morrisons said prices were down 2.6 per cent from a year earlier as the supermarket price war continued.

The retailer was helped by a 17 per cent rise in sales from its Food to Go range, which includes freshly-made sandwiches.

Total sales fell 1.8 per cent after Morrisons closed unprofitable supermarkets and sold its c-store arm.

Chief executive David Potts, who has now been in charge for a year, claimed there was 'still much to do', but said that he was encouraged by the progress being made by the company following a long period of declining sales and profits, which led to the resignation of former chief executive Dalton Philips at the start of last year.

Morrisons share price is up by 4.40 per cent at the time of writing.