“With the end of the global commodities boom and the onset of the economic and financial crisis, inflation in the EU food and meat sector has slowed considerably and now largely ended,” it said in its latest EU Market Survey.
By September this year meat price inflation in the EU-27 was little more than 1%. “Demand for meat has been affected by the downturn in consumer spending and this in turn has resulted in more promotional activity in many member states,” said the report. Overall food inflation reached 8% in mid-2008, but by August this year there was small deflation.
“On the largest meat markets, meat inflation was only 1% in Germany, France and Italy while in the UK there was marginal deflation. The low level of meat price inflation has inevitably had an impact on livestock prices. In virtually all member states producer prices in September in euro terms were below those of a year earlier, with the sharpest reductions evident in the pig sector.”