Food price inflation reaches new low
Latest figures from Kantar Worldpanel, show that grocery price inflation fell to 0.2%, the lowest level for at least 8 years. This trend has been followed by retail meat prices, which were unchanged on a year before in July 2014.
Latest figures from Kantar Worldpanel, show that grocery price inflation fell for the eleventh consecutive period in the 12 weeks ended 17 August, standing at just 0.2% – the lowest level since October 2006, when Kantar Worldpanel began this specific measure. Food inflation has fallen as competition between retailers has driven down the price of staple items, such as vegetables, milk and bread. This has impacted on the overall growth of the grocery market, which has fallen to a 10 year low of 0.8%.
The trend is backed up by recent ONS consumer price data. This competitive pricing in the grocery market has brought retail price inflation for food down to -0.1% in July, its lowest level since March 2006, compared to 3.8% a year ago. This trend has been followed by retail meat prices, which were unchanged from July 2013, having risen by nearly 5% in the previous 12 months. Throughout the year, annual pork price inflation has fluctuated between a peak of 7.6% and low of -4.8% and it stood at 1.1% as of July, down from 4% at the same time last year. However, having risen steadily during 2013, bacon prices were down by 2.4% in the year to July.