Connect with us

Hi, what are you looking for?

THE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & LifestyleTHE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & Lifestyle



Falls in chocolate and jam prices slow food inflation

Falls in chocolate and jam prices
Falls in chocolate and jam prices

Listen to the article now

Consumer spending on staples like sugar, jam, and chocolate has reduced food price inflation in the United Kingdom to levels not seen in over two years, according to recent data from the sector. According to the British Retail Consortium (BRC), the total inflation rate dropped nearly half to 1.3% in March from 2.5% in February as a consequence of price reductions caused by competition among shops.

While food costs are still 3.7% higher than a year ago, they have been trending downwards in inflation for the past 10 months. Retailers engaged in intense competition, providing large prices and promotions in the lead-up to Easter, according to the BRC. Dairy products, chocolate, and other goods saw price drops as a result.

Nevertheless, non-food retail goods inflation fell to 0.2% in March from 1.3% the month before, which was in addition to the decrease in food costs. The general rate of price increases throughout the economy, known as inflation, is 3.4% in the UK right now.

The BRC’s chief executive, Helen Dickinson, said that although consumers have felt some relief from high commodity prices, they should not anticipate a return to prices seen before the pandemic. The present inflationary climate is the result of a number of variables, some of which being wages and energy costs as well as other commodities.

Along with the greatest increase to the National Living Wage ever recorded, Ms. Dickinson brought attention to supplementary expenditures like increased business rates, recycling initiatives, and expanded border checks. She stressed that these things could derail the year-long trend of falling inflation.

Workers on low wages have received a boost from the recent hike to the National Living Wage, which went up from £10.42 to £11.44 for those over the age of 21. Supermarkets outside of London have also raised wages for employees, since competition for talent is fierce.

According to Mike Watkins, Head of Retailer and Business at Insight, NielsenIQ, food price inflation is projected to diminish because supermarkets are competing fiercely to attract customers with sales and discounts, especially in the days leading up to holidays like Mother’s Day and Easter.

Comment Template

You May Also Like

Notice: The Biznob uses cookies to provide necessary website functionality, improve your experience and analyze our traffic. By using our website, you agree to our Privacy Policy and our Cookie Policy.