Midlothian & East Lothian Chamber of Commerce’s Post

Falling food prices in February! 🥙 Our Shop Price Index, published today, shows food prices fell in February while overall shop price annual inflation eased to 2.5% (from 2.9% in January). 📉 Fierce competition between retailers is driving down food prices for consumers, particularly fresh foods such as meat 🥩, fish 🐟 and fruit. 🍏 Promotions also meant that clothing prices continued to fall. 👚 However, CEO, Helen Dickinson, warned of risks ahead for inflation: “Significant uncertainties remain as geopolitical tensions rise. Prices of non-food goods will be more susceptible to shipping costs, which have risen due to the re-routing of imports around the Cape of Good Hope.” On the 6.7% rise to the business rates multiplier that retailers face: “April’s rates rise should be based on April’s inflation, and the Chancellor should use the Spring Budget to make this correction, supporting business investment and helping to drive down prices for consumers.” To read the SPI in full 👉 https://lnkd.in/e8abQiCB #inflation #foodinflation  

February saw a significant drop in shop price annual inflation to 2.5%, marking is lowest since March 2022, with notable declines in food prices, offering consumers relief amidst economic uncertainties. Read more below 👇 #Dash #inflation #retailinsights

Food price inflation fell in February to its lowest rate in nearly two years, driven by easing energy and fertiliser costs and fierce competition among retailers to keep prices down. Food prices in February were 5% higher than a year ago, but that marked a drop from January's 6.1%, and the lowest level since May 2022, the British Retail Consortium (BRC) said. Fresh food inflation slowed with price drops for meat, fish and fruit. However, the BRC warned that "significant uncertainties" remain. Food prices dipped 0.1% month-on-month in February, the BRC said, noting drops in certain fresh food items. Non-food inflation remained unchanged at 1.3% in February, with the price of goods such as furniture, electronics and health and beauty products rising but clothing continuing to fall with retailers keeping promotions running. "There was good news for consumers as shop price inflation fell to its lowest rate in nearly two years," Helen Dickinson, chief executive of the BRC, said. "Easing supply chain pressures have begun to feed through to food prices, but significant uncertainties remain as geopolitical tensions rise. "Prices of non-food goods will be more susceptible to shipping costs, which have risen due to the re-routing of imports around the Cape of Good Hope." Read more ➡️ https://buff.ly/3ThFtJj The Scottish Chambers of Commerce Network is here to support your business - reach out to share your views, concerns and opportunities. #SCCnews #businesssupport #businessnetwork #businessvoice #businessleader Sign up for the Scottish Chambers of Commerce enewsletter at https://buff.ly/3CpsQnu

The inflation rate has hit 2% for the first time in nearly three years. But what does that mean for your weekly grocery shop? Prices are now rising more slowly… But you probably won't see a big drop in your food bill right away. While some items like fish, milk, and cheese have gotten cheaper, major price cuts across the board will take time. Want to save money in the meantime? This article suggests: - Sometimes opt for supermarket own brands. - Choose canned, frozen, and dry goods. - Check unit prices and look for sales. - Consider changing supermarkets. While the benefits of lower inflation on food prices will be gradual… These can help you stretch your budget further. Are you feeling the pressure of food costs? https://lnkd.in/eeTZT9JJ

Overall, the food index increased 0.4% last month after rising just 0.1% in August. The food-at-home index (grocery) rose 0.4%, the highest since January when it was also 0.4%, while food-away-from-home prices increased 0.3%. 💚Grocery prices were flat in August.The CPI for All Urban Consumers increased 0.2% on a seasonally adjusted basis, the same increase as in August and July. “The latest CPI numbers demonstrate that taming inflation continues to be an uneven process,” said Andy Harig, vice president, Tax, Trade, Sustainability, and Policy Development for FMI — The Food Industry Association. “Food prices are driven by many factors and can be volatile…but we shouldn’t let a single month’s data obscure the very real progress that has been made addressing food price inflation — ⚠️ on a year-over-year basis, food-at-home inflation came in at 1.3%, a very strong showing.”⚠️💚💚💚💚 Some retailers, however, are cutting the price of food. In late September, Giant Eagle announced a 20% average price reduction on more than 200 produce items, a measure that is costing the grocer $25 million. https://lnkd.in/ekHNGGpZ

In 2023, consumers worldwide struggled with rising fresh food prices and diminished spending power. Having increased by 3.6% in 2022, retail volume sales growth slowed to 1.4% in 2023. Nevertheless, retail value sales increased significantly as inflation pushed prices upwards. As 2023 continued, inflation slowed in many markets. However, while it remains positive, prices on shelves are still rising. Furthermore, and more importantly in this context, food inflation continues to run ahead of the overall rate in many countries. In the UK, for example, prices of food and non-alcoholic beverages rose by 8.0% in the year to December 2023, while the headline (CPI) inflation rate for the same period was 4.0%.

Easter deals help UK food inflation. The first quarter of 2024 ended on a positive note, with growth in most major markets, and encouraging inflationary news in the UK. Starting with the latter, the British Retail Consortium (BRC) reported that shop price inflation eased to 1.3% in March, down from 2.5% in February. This was the lowest level recorded since December 2021. With Easter coming towards the end of March, chocolate sales were unsurprisingly notable. The BRC noted that although Easter treats were more expensive than in previous years due to high global cocoa and sugar prices, falling dairy prices and strong retail deals led to lower prices when compared to February. #retirementplanning #retirementgoals #financialadvice #financialgoals

Consumers have been forced to spend about 26% more on groceries in general since 2020. In Canada, food prices are expected to increase a further 2.5% to 4.5% on top of already high prices in 2024 (we think it could be even higher). Read the Auspice Capital Advisors blog for an update on agflation here -> https://lnkd.in/gTHMnmMV