According to Bloomberg, U.K. food prices increased the fastest in a year in August as manufacturers passed on higher commodity prices, the British Retail Consortium said.
September 10, 2010
According to Bloomberg, U.K. food prices increased the fastest in a year in August as manufacturers passed on higher commodity prices, the British Retail Consortium said.
Food prices rose an annual 3.8%, up from 2.5% the previous month and the most since July 2009, the BRC said in an e-mailed statement Sept. 7 in London, citing a survey by Nielsen. Shop-price inflation accelerated to 1.7% from 1.5%.
Food prices are gaining as producers pass along higher costs of raw materials, the BRC said. Wheat prices have soared 53% in the last three months. Inflation may be limited as consumers tighten budgets before the government’s planned spending cuts and shops reduce prices to lure customers.
“As shoppers return from their summer holidays, many will review household budgets again,” said Mike Watkins, Senior Manager of Retailer Services at Nielsen. “We can expect to see retailers putting together some strong autumn promotions to tempt shoppers.”
The BRC’s measure of shop-price inflation was held down by a smaller increase in the price of non-food items. Annual inflation in those products eased to 0.5% in August from 1% in July, the statement said.
Bloomberg article