Oct 14 (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 ( ACI ) 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.