Business Express is an online portal that covers the latest developments in the world of business and finance. From startups and entrepreneurship to mergers and acquisitions, Business Express provides reporting on the stories that matter most to business leaders and decision-makers.The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

UK retailers report record food inflation but see falls ahead

UK retailers report record food inflation but see falls ahead

By David Milliken

LONDON (Reuters) – Food prices at British supermarkets rose 15.7% in the year to April, the biggest annual increase in records going back to 2005, but lower prices are on horizon, the British Retail Consortium (BRC) said on Tuesday.

Overall inflation among BRC members dropped to 8.8% from March’s 8.9% as price increases for non-food items slowed due to heavy discounting of clothing, footwear and furniture.

Costlier coffee beans and more expensive packaging and production of ready-meals pushed up food inflation, but prices of butter and vegetable oil were starting to decline.

“We should start to see food prices come down in the coming months as the cut to wholesale prices and other cost pressures filter through,” BRC chief executive Helen Dickinson said.

Britain’s official measure of consumer price inflation peaked last October at 11.1%, its highest in more than 40 years. Since then it has fallen more slowly than the Bank of England expected and remained above 10% in March.

The Office for National Statistics’ measure of food price inflation – which is calculated differently to the BRC’s – was the highest since 1977 in March at an annual 19.1%, reflecting higher costs for biscuits, cakes and confectionery.

Last week market research company Kantar said it estimated that grocery inflation dropped to 17.3% in the four weeks to April 16, down from 17.5% a month earlier, but said it was too soon to be sure that inflation had peaked.

The BRC data was based on prices collected from April 1-7.

Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!

By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email.

In other figures released on Tuesday, businesses were cautiously optimistic about the outlook for the rest of 2023.

The Confederation of British Industry said business volumes in the services sector fell modestly in the three months to April, but firms expected a return to growth in the next three months. For consumer services companies, this would be the first rise since February 2022.

The Institute of Directors (IoD) reported a fifth consecutive monthly rise in confidence among its members, returning to its level immediately before Russia invaded Ukraine in February 2022.

“It is particularly reassuring to see a recovery in investment intentions, raising the hope that the economic fundamentals can continue to improve in the months ahead,” IoD chief economist Kitty Ussher said.

Last month, the International Monetary Fund forecast Britain’s economy would shrink 0.3% this year, the biggest fall of any major economy.


(Reporting by David Milliken; Editing by William Schomberg)


Recent Post: