J SAINSBURY PLC 
LONDON (Reuters) - The fall in the British pound
"It is not certain we will see inflationary pressures passed on to customers," Mike Coupe told the company's annual shareholder meeting, noting supermarkets might absorb higher costs due to competitive pressures.
"It is difficult to judge how it will play out. Things may change in future, commodity prices could come down, exchange rates could change," he said, noting Sainsbury's is hedged against volatile commodity prices and currencies.
The pound has fallen about 13 percent against the U.S. dollar since the "Brexit" vote on June 23, hitting a 31-year low on Wednesday. It has also dropped to a three-year low against the euro.
Coupe told Reuters that many products - particularly non-food items - were sourced months in advance so there was unlikely to be any immediate inflationary pressure, while lower oil prices would have an impact more quickly.
About half Sainsbury's products are bought in Britain and about a third are sourced in the European Union, he said.
On Tuesday, Coupe said Sainsbury's remained committed to its proposed purchase of Argos-owner Home Retail (>> Home Retail Group Plc) despite increased economic uncertainty, warning of the danger of Britain talking itself into another recession.
Some analysts have said that by becoming Britain's biggest non-food retailer Sainsbury's will be more exposed to discretionary consumer spending, which could be dented by the current economic and political uncertainty.
But Coupe said on Wednesday weaker consumer confidence could have other affects that could benefit Sainsbury's - such as people cutting back on eating out and cooking more at home.
(Reporting by Emma Thomasson; Editing by Jason Neely and Mark Potter)
