Tesco shares hit a 12-year high yesterday as it raised its profit forecast and set the scene for a Christmas price war. Boss Ken Murphy hailed strong demand for its Tesco Finest range, with good weather encouraging shoppers to buy new products such as pistachio gelato and iced coffee concentrates. He also said that shoppers were ‘worried’ about what Rachel Reeves has planned. ‘Competitive intensity remains high, and with continued pressure on household budgets we remain committed to ensuring customers get the best possible value by shopping at Tesco. The latest share price rise took gains to 26 per cent this year.