Food sector sees good inflation
Published:  05 July, 2013

Despite an overall deflation for shop prices in the past two months, food inflation has increased to 2.7% in June from 2.4% in May.

The food sector performed exceptionally well compared to the non-food sector, which experienced its deepest deflation since February 2007.

The shop price index was compiled by the British Retail Consortium (BRC)-Nielsen, and BRC director general Helen Dickinson said: “Food inflation has edged up marginally since the near three-year low seen in May, driven by slight increases in ambient and fresh food prices. However, I would expect it to remain fairly stable over the medium term.”

Nielsen’s head of retailer and business insight Mike Watkins commented on the improvement for the food industry. He said: “If this trend continues, it will set the shoppers’ agenda for the next six months and food retailers may need to focus on simple price cuts, as well as multi-buys, in order to drive footfall and spend.”