Food inflation falls 'for first time since March' |
| Wednesday, 08 October 2008 | |
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Food inflation has fallen for the first time in six months, the latest statistics from the British Retail Consortium (BRC) revealed. Year-on-year in September food price inflation hit 9.1%, the BRC said, lower than the 10% growth seen in August. Annual shop price inflation was 3.6%, down from 3.8% the month before, again the first dip since March. Inflation in the fresh food category decreased to 10.7%, while ambient was down to 6.7%, the BRC said. Such figures seem to suggest, it argued, that food price inflation peaked in August, as the cost of commodities fell due to fears that the economy is slowing down. Margins at retailers have also been aided because the Producer Price Index is beginning to slowdown, and was 12.5% in August, the BRC said. Commenting on the figures, director general at the BRC Stephen Robertson called on the Bank of England to cut interest rates when it meets this week so that consumers are given further help. "This will build customer confidence in the run-up to Christmas," he said. Senior manager of retailer services at Nielsen Mike Watkins believes that customers will be cautious for the rest of the year. The National Farmers' Union has said that a big harvest will be seen this year, which could also lower the price of food. Related Articles
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