Discounting seals trend for fall in food price inflation

Food price inflation fell back in January to 3.7 per cent from 4.2 per cent in December 2011 and is now at its lowest since July 2010.

British Retail Consortium (BRC) director-general Stephen Robertson ascribed the drop to discounting and cheaper commodity costs working through and said further falls were expected.

Commodity prices have fallen by nine per cent over the past six months, according to the Thomson Reuters/Jefferies CRB index.

Mike Watkins, retailer services manager at analyst Nielsen, noted: "Food retailers in particular continued to offer savings in January with price cuts and promotions on everyday items".

A report from Nielsen and the BRC suggested: "Food inflation faced by consumers remains considerably lower than factory gate inflation, demonstrating the fiercely competitive sector as retailers absorb cost pressures to protect market share."

Kantar WorldPanel communications director Edward Garner echoed the findings: "Food inflation will continue to fall in 2012. But averages can be misleading. Despite the recession, people are trading up - for example, to premium own-brand lines."


Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Sign up now
Already registered?
Sign in

Read These Next

How can growers benefit by supporting agroforestry?

How can growers benefit by supporting agroforestry?

Agroforestry has the potential to deliver on a range of policy objectives in England, according to a new report from the Woodland Trust and the Soil Association.

How should perceived shortcomings in Defra's farming policy plans be addressed?

How should perceived shortcomings in Defra's farming policy plans be addressed?

The Government needs to provide much more detail on its post-Brexit farming policy if its twin aims of increasing farm competitiveness and enhancing the environment are to be met, according to a new report published this week by the parliamentary Environment, Food & Rural Affairs Committee.

Will UK fruit producers still have access to imported trees and plants post-Brexit?

Will UK fruit producers still have access to imported trees and plants post-Brexit?

With the UK's future trading relationships with the EU and the wider world still up in the air, the fruit-growing industry has expressed concern about whether it will still be able to bring in the fruit trees and soft-fruit plants on which it depends.


Follow us on:
  • Facebook
  • LinkedIn
  • Twitter
  • Google +

Horticulture Week Top UK FRUIT PRODUCERS

See our exclusive ranking of fruit producers by annual turnover. 

Horticulture Jobs
More Horticulture Jobs

Pest & Disease Tracker bulletin 

The latest pest and disease alerts, how to treat them, plus EAMU updates, sent direct to your inbox.

Sign up here

Professor Geoffrey Dixon

GreenGene International chair Geoff Dixon on the business of fresh produce production
 

Read Professor Geoffrey Dixon