News

British Shoppers See Stretch of Price Deflation

Food prices just registered their deepest deflation in more than a year.

But the BBC (July 6) says the trend in lower food prices might reverse:

The sharp fall in the pound, which has plunged about 11% against the US dollar since the outcome of the EU referendum vote, has led several analysts to warn that the price of groceries could rise longer term.
Some 40% of food consumed in the UK is imported meaning any long-term shift in exchange rates could lead to higher food costs.

In the meantime, the chief executive of the British Retail Consortium calls the stretch of shop price deflation "extraordinary."

A July 6 Daily Mail article mentions specific price changes:

Overall shop deflation of 2% in June was deeper than the 1.8% decline in May, and lower than the 12-month average of 1.8%, according to the BRC-Nielsen Shop Price Index.
Food deflation deepened further in June, falling to 0.8% from 0.3% in May, while fresh food reported a further acceleration from 0.8% in May to 1.5% - the deepest rate since September last year...
British Retail Consortium chief executive Helen Dickinson said: 'This month's figures show overall shop prices falling once again. This extraordinary 38-month run of deflation has undoubtedly been good for consumers.

You can read the entire article by clicking on the link below:

http://www.dailymail.co.uk/wires/pa/article-3676195/Food-prices-deepest-deflation-year.html