(Reuters) -Albertsons ( ACI ) raised its annual profit and sales forecast on Tuesday, citing steady demand for essential groceries and pharmacy products despite tight consumer budgets.

Shares were up 5% in premarket trading after the company also raised its share buy-back plan by $750 million.

U.S. consumers are tightening their belts as inflation rises and the labor market weakens, boosting demand for lower-priced groceries and fueling sales at supermarkets such as Albertsons ( ACI ) and Walmart.Albertsons expects annual adjusted earnings per share of $2.06 to $2.19, versus prior guidance of $2.03 to $2.16.

It now sees identical sales growth between 2.2% and 2.75%, up from 2.0% to 2.75%, the company said.