Supermarket chain’s slowdown comes as competition watchdog accuses retailer of ‘illusory’ discounts on hundreds of items

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Australia’s biggest supermarket chain, Woolworths, has warned its profits have been hit as cost-of-living pressures weigh on buying decisions, prompting shoppers to opt for cheaper products.

The supermarket giant disclosed on Wednesday that sales growth had slowed in October after shoppers sought out items with “deeper specials”, sparking an immediate slide in its share price.