04 Mar 2008


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Food price inflation here to stay

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Underlying food price inflation will continue to impact the food and drink industry for the rest of 2008 and maybe beyond.

That's the view of leading industry analyst Mike Watkins, senior manager of retailer services at Nielsen.

The Nielsen/BRC Shop Price Index shows food prices have risen by up to 8% over the last two years, says Watkins, writing in the recently released Checkout Nielsen Top 100 Grocery Brands 2008 report.

In the first part of 2007 many of the cost price increases were being absorbed by the supply chain, but now the consumer is starting to see the impact across a wider range of categories, Watkins adds.

The price increases could lead to consumers cutting back on elements of their weekly grocery shopping, he argues, trading down from premium products to cheaper items.

Read Mike Watkins' analysis of rising food prices

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