Thursday, Jun 04, 2009
Houses Becoming More Affordable?
Mail: UK leads EU on food price rises: Shopping bills up 8% - elsewhere they're falling
"Food price inflation in the UK is almost four times higher than in the rest of Europe while supermarkets have enjoyed record profits. Figures from the Organisation for Economic Co-operation and Development show that UK food inflation last year was 8.6 per cent, compared to an average of 2.2 per cent for the EU. In Germany there was a fall of 0.7 per cent, while in France prices rose just 0.8 per cent".
Posted by alan @ 08:39 AM (799 views) Add Comment
12 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. Gggggggarry said...
As a net importer of food, mostly from Europe, end price inflation should be expected due to the fall in sterling last year. The fact that the rate of inflation was only 8% rather than equivalent to the fall in sterling, indicates that costs have been absorbed by retailers and manufacturers rather than lose sales by spooking the consumer.
As sterling is rising again there may be deflation in end prices, however, this may not be the case due to the opportunity to widen margins following the hit already taken in absorbing higher commodity prices.
2. paul said...
And the Bank of England's logic is that the higher food prices are countered by lower interest rates.
Do you see why the UK's bankrupt now?
3. crunchy said...
As I said only last week and have been saying for months FOOD is the one to watch.
Any problems in the process or supply for whatever "reason" could make the price of food skyrocket.
4. crunchy said...
1. paul, Do you get the feeling that something will have to give now, whatever they do with rates?
Have they cornered themselves into freeze mode due to past mistakes? Your thoughts please.
5. landofconfusion said...
2. crunchy said...
"Any problems in the process or supply for whatever "reason" could make the price of food skyrocket."
Yes, but 'inflation' won't. Food isn't an essential unlike say, cars and MP3 players.
6. paul said...
From here on in, I think the strategy is to print money all the way.
If economists aren't more alarmed than reassured by this, then its because they are simply not doing their jobs properly.
7. Gggggggarry said...
As a net importer of food, mostly from the Eurozone, the UK has seen food price inflation due to the devaluation of the £ last year. The inflation should have been higher but it appears that most producers/retailers have absorbed the bulk of the currency based rise in import costs. The ongoing rise in Sterling should lead to lower import costs and lower food prices, however, this may not be passed on by producers/ retailers as they seek to rebuild their margins.
8. crunchy said...
4. landofconfusion, How silly of me to think in terms of food being an essential. I could have quiet unnecessarily dropped a spanner in the
works of the limp monetary policy that got us into this mess before an election campaign with a catchy slogan like
"no more boom and bust" and a whiter than white promise to get us out of this mess.
5. paul, Thanks.
9. alan said...
Paul said..."I think the strategy is to print money all the way".
I have a horrible gut feeling you are right. America is investing cash in failed banks and auto companies. Expect the UK to follow suit - especially with a general election on the horizon. Don't expect to see prudency in public expenditure for a while yet!
I think Brown could ride out the storm within his own party. We are past the point of "back me or sack me"... the NuLab government can hardly sack Brown and install someone else. There would just be no credibility...!
So, NuLab throw money around and leave the next government to pick up the pieces.
Guessing the possible strategy: both the Dollar and the Pound sink at the same rate....a stability of sorts for a while. If the Euro sinks too, all we will notice is the price of commodities like Gold and Oil rising.... There will be a reckoning...but not for a while.
10. icarus said...
This is about UK supermarkets ripping off everybody from producers to consumers. Why have prices risen? The weak £? Pull the other one. If they're containing costs rather than passing them on to customers why are their profits so high? City bonuses? MPs' expenses? Look at the pay and bonuses of Sainsburger's CEO.
11. goweresque said...
The food processors and retailers must be coining it in. I'm a farmer, and farm gate prices are lower for many things now than a year or so ago. Cereals prices are in the £100-120/tonne range, against £180 at the peak just over a year ago. Milk prices are falling too. Meat prices are up however - livestock farmers are getting more for their cattle & sheep at the moment. But prices were very low for livestock over the last few years due to Foot & Mouth and Bluetongue restrictions. I doubt you saw any cheap lamb in the shops when you could buy a fat lamb for £40 at market. They are close to £80 each now.
12. This comment has been removed as it was found to be in breach of our Blog Policies.