Commodities push up food inflation in April

Higher commodity prices pushed the rate of food price inflation up to 2% last month, according to the latest British Retail Consortium-Nielsen index.



That was up from 1.2% in March – its lowest level since the series began in 2006.


Pressure came from both fresh and ambient food inflation which rose to 1.2% and 3.0% respectively. Higher prices for fruit, convenience food and meat had a particularly strong inflationary pressure, while the category including milk, cheese and eggs saw prices fall on an annual basis.


Food inflation was still well below the same period last year and was expected to remain relatively stable barring any shocks in supply and commodity prices.


“Food inflation is a quarter of what it was this time last year while some produce is actually cheaper than 2009,” Stephen Robertson, British Retail Consortium director general, said.


“Oil, which is up 70% over the year, also influenced some non-food prices as manufacturing and transport costs went up. VAT is also higher than a year ago.


“But the main effects of rising costs and the weak pound have now been felt. With demand still weak, shop prices should be more stable in future months, as long as there are no more big shocks.”

Futures markets and commodity risk management online course:

  • Risk management strategies for a more predictable financial performance
  • Educated conversations when collaborating with your advisors
  • Negotiate better prices with your grain merchants

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Futures markets and commodity risk management online course:

  • Risk management strategies for a more predictable financial performance
  • Educated conversations when collaborating with your advisors
  • Negotiate better prices with your grain merchants

View course

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