Food Sales Fall By Highest Amount Since 1980S

[OnlyMe]

This is it. Doesn't matter is these are renters or borrowers this drastic cut back in food purchasing is showing how inflation has crippled expenditure, it was only a matter of time before inflation really strated to hurt - this is hurting, a lot.

The housing bubble is going to get busted big time.

http://www.telegraph.co.uk/news/8652330/Food-sales-fall-by-highest-amount-since-1980s.html

Food sales fall by highest amount since 1980s

THE amount of food that Britons bought in supermarkets in June fell by the highest level since the late 1980s as rising food prices hit the weekly shop.

James Hall

By James Hall

5:00PM BST 21 Jul 2011

Sales volumes in supermarkets – the number of products that people paid for at the tills – dropped by 4.2 per cent in June compared to the year before, official figures from the ONS show. This is the biggest fall since the ONS started collating the figures in 1988.

Spiralling food prices were blamed for the decline in sales volumes. The ONS said that food prices rose by 5.8 per cent above inflation in June, meaning that consumers had to cut back on the amount they bought to make ends meet. Inflation currently stands at 4.2 per cent. The increase in food prices in June was the highest for over two years.

[Mrs Bear]

This is it. Doesn't matter is these are renters or borrowers this drastic cut back in food purchasing is showing how inflation has crippled expenditure, it was only a matter of time before inflation really strated to hurt - this is hurting, a lot.

The housing bubble is going to get busted big time.

http://www.telegraph.co.uk/news/8652330/Food-sales-fall-by-highest-amount-since-1980s.html

Food sales fall by highest amount since 1980s

THE amount of food that Britons bought in supermarkets in June fell by the highest level since the late 1980s as rising food prices hit the weekly shop.

James Hall

By James Hall

5:00PM BST 21 Jul 2011

Sales volumes in supermarkets – the number of products that people paid for at the tills – dropped by 4.2 per cent in June compared to the year before, official figures from the ONS show. This is the biggest fall since the ONS started collating the figures in 1988.

Spiralling food prices were blamed for the decline in sales volumes. The ONS said that food prices rose by 5.8 per cent above inflation in June, meaning that consumers had to cut back on the amount they bought to make ends meet. Inflation currently stands at 4.2 per cent. The increase in food prices in June was the highest for over two years.

Maybe we're just wasting less.

Last I heard, it was around 33% of all the food bought in the UK.

Still, 4.2% is a start.

[jonboy2010]

This is it. Doesn't matter is these are renters or borrowers this drastic cut back in food purchasing is showing how inflation has crippled expenditure, it was only a matter of time before inflation really strated to hurt - this is hurting, a lot.

The housing bubble is going to get busted big time.

http://www.telegraph.co.uk/news/8652330/Food-sales-fall-by-highest-amount-since-1980s.html

Food sales fall by highest amount since 1980s

THE amount of food that Britons bought in supermarkets in June fell by the highest level since the late 1980s as rising food prices hit the weekly shop.

James Hall

By James Hall

5:00PM BST 21 Jul 2011

Sales volumes in supermarkets – the number of products that people paid for at the tills – dropped by 4.2 per cent in June compared to the year before, official figures from the ONS show. This is the biggest fall since the ONS started collating the figures in 1988.

Spiralling food prices were blamed for the decline in sales volumes. The ONS said that food prices rose by 5.8 per cent above inflation in June, meaning that consumers had to cut back on the amount they bought to make ends meet. Inflation currently stands at 4.2 per cent. The increase in food prices in June was the highest for over two years.

Maybe this is the master plan to cut down on Obesity......

[Mr 0.01%]

They wish! If I remember correctly, I think I've read a couple of articles showing that the cheapest food is mostly the fattiest (frozen filth etc).

I'm actually a bit worried about this winter. Summer's fine - I love cheap salad etc. But in winter when I want something meatier/heavier/more expensive I wonder if my budget will stretch as far as I'd like it to.

I do tend to agree with OP tho. If ppl are starring to cut back on food, it can't be long till the masses start to think where else they can make savings - unreasonable mortgage, rent payments etc and as car ownership is already declining, there cant be much more room for movement without houseprices being effected...?

[skomer]

Maybe we're just wasting less.

Last I heard, it was around 33% of all the food bought in the UK.

Still, 4.2% is a start.

I have made much more of an effort to reduce waste changing the way i buy stuff. Less massive weekly shopping sprees and buying just for a few days

[inflating]

In some other countries where they have seen property prices rise dramatically, food prices are a much larger chunk of take-home pay than in the UK and yet property prices still do not seem to me to be in-tandem with local salaries, they seem to still be far too high. I could give a European country example - an average big city salary is about 30,000p/a of their currency (£7,200 approx) and 1-bed city flats are at least 240,000 (£60,000). Their base rate is 4.5%

Agents are still bullish in that country, one of them saying to a job candidate of my aquaintance at an interview last week: "Property prices always go up."

Yes, I know he sounds like a...

The UK may not be used to paying so much of its wage on food or whatever else is now rising, and so that may be a factor in popping the bubble in the UK, finally... I'll not be confident of a HPC in the UK until I see the BoE put rates to where they should be right now, which is 6% to 8%

Edited July 23, 2011 by inflating

[@contradevian]

I find it best to dump whole food groups. Starting with the least healthy. Baked goods and wheat. Gone. Haven't eaten cereals in years. . Fruit has also gone except for a few blueberry/strawberry purchases a week and ideally have to be bogoffs.

Next diary under review.Milk gone too(except for guests who might have to accept black coffee). Now restricted to double cream and high fat greek yoghurt allowance a week. Plenty of butter though.

Ready meals and takeaways went a long time ago, apart from a once a week kebab meat (small, no salad, chips or bread). Still rather partial to mushy/processed pea's occasionally though.

The" luxury" is very dark chocolate, 84% cocoa makes it impossible to pig.

[GinAndPlatonic]

I find it best to dump whole food groups. Starting with the least healthy. Baked goods and wheat. Gone. Haven't eaten cereals in years. . Fruit has also gone except for a few blueberry/strawberry purchases a week and ideally have to be bogoffs.

Next diary under review.Milk gone too(except for guests who might have to accept black coffee). Now restricted to double cream and high fat greek yoghurt allowance a week. Plenty of butter though.

Ready meals and takeaways went a long time ago, apart from a once a week kebab meat (small, no salad, chips or bread). Still rather partial to mushy/processed pea's occasionally though.

The" luxury" is very dark chocolate, 84% cocoa makes it impossible to pig.

Gee man then what are you eating, if no fruit .?

[righttoleech]

In some other countries where they have seen property prices rise dramatically, food prices are a much larger chunk of take-home pay than in the UK and yet property prices still do not seem to me to be in-tandem with local salaries, they seem to still be far too high. I could give a European country example - an average big city salary is about 30,000p/a of their currency (£7,200 approx) and 1-bed city flats are at least 240,000 (£60,000). Their base rate is 4.5%

Agents are still bullish in that country, one of them saying to a job candidate of my aquaintance at an interview last week: "Property prices always go up."

Yes, I know he sounds like a...

The UK may not be used to paying so much of its wage on food or whatever else is now rising, and so that may be a factor in popping the bubble in the UK, finally... I'll not be confident of a HPC in the UK until I see the BoE put rates to where they should be right now, which is 6% to 8%

Be bold........tell us which country.

[inflating]

Be bold........tell us which country.

It's Poland

Have a look at the "exposed units" graph, priced in sq metres

http://www.globalpropertyguide.com/Europe/Poland/Price-History

If prices are falling now, I shudder at what they were before

[@contradevian]

Gee man then what are you eating, if no fruit .?

I eat very well mate. Stick to the basics. Eggs, Chicken. mince beef, fish (including tin fished mackarel and sardines.) and plenty of non starchy vegetables and some nuts. Oh and eggs. Did I mention egg's?

Oh and I missed out another food group. Legumes. None of them either. You won't find a baked bean stash in my house! Pea's are technically a fruit.

Edited July 23, 2011 by John Steed

[ken_ichikawa]

Be bold........tell us which country.

Hong Kong is like that, food takes up about 20-35% of a persons income, property prices can be absolutely insane...

of course in HK offices the women there appear to eat constantly non stop. While in the UK I used to have a bowl of sweets whicih would last a couple of weeks. They have a bowl of sweets massive bags of crisps (bags of Crisps in Asia are always around the 200gram mark) lots of fatty beef jerky etc and they'd eat constantly. Strangely though the women would never get fat from this.

[Greg Bowman]

Maybe we're just wasting less.

Last I heard, it was around 33% of all the food bought in the UK.

Still, 4.2% is a start.

+1 and add to the that the incredible amount of obsese people walking around when half the world is starving. As you say Mrs Bear it's a start. I don't have a problem with food inflation it's been artificially cheap for thirty years.

It's a virtuous circle people waste less, eat less so become healthier, walk more blah blah - it's exactly the same when many people on here say why does everyone think rising house prices are a good idea? Why do some people think that cheap food is a good idea so the proles can stuff themselves and put a burden on the healthcare system?

[inflating]

Why do some people think that cheap food is a good idea so the proles can stuff themselves and put a burden on the healthcare system?

1 I'm not so sure much of it was ever actually cheap, just cheaper than some places

2 There will be some people who were just about managing to eat enough of a good diet to prevent their health deteriorating, the price rises will jeopardise their being able to continue with that

3 I agree if obesity falls it will help the system cope with those who suffer as above

[OnlyMe]

+1 and add to the that the incredible amount of obsese people walking around when half the world is starving. As you say Mrs Bear it's a start. I don't have a problem with food inflation it's been artificially cheap for thirty years.

It's a virtuous circle people waste less, eat less so become healthier, walk more blah blah - it's exactly the same when many people on here say why does everyone think rising house prices are a good idea? Why do some people think that cheap food is a good idea so the proles can stuff themselves and put a burden on the healthcare system?

Problem is a lot of what contitutes the cheap food is the rubbish left over, it is the premium quality, fresh (i.e. not with a couple of day's left in date) that is the stuff going up the most.

Intersting comment about Hong Kong - if this becomes the modern chinee trait then food reources will really take a knock, add a good few hundred million people with a very high meat content diet to the demand curve!

[Greg Bowman]

The UK may not be used to paying so much of its wage on food or whatever else is now rising, and so that may be a factor in popping the bubble in the UK, finally... I'll not be confident of a HPC in the UK until I see the BoE put rates to where they should be right now, which is 6% to 8%

I wouldn't be confident then.....

There was a very interesting thread on here recently that explained that unrealistic interest rates i.e high for no risk with a low inflation environment started the crisis pre 2007. Just as corrosive as too low in an high inflation era - personally I still think we are in danger of deflation.

Many of the adjustments in price are bringing things back to realistic levels

Food was too cheap

Rents in the high street will come down because the move to internet shopping means a business model has changed

Cheap fuel funded an import only economy (fuel was more expensive realtively in 1961)

These are structural longer cycle changes and the just happen to coincide with post 2007. I am no lover of Merv the swerve but he has a point in these areas - how wil higher interest rates reduce the inflation pressures from oil and energy costing more full stop?

Edited July 23, 2011 by Greg Bowman

[inflating]

I wouldn't be confident then.....

There was a very interesting thread on here recently that explained that unrealistic interest rates i.e high for no risk with a low inflation environment started the crisis pre 2007. Just as corrosive as too low in an high inflation era - personally I still think we are in danger of deflation.

Many of the adjustments in price are bringing things back to realistic levels

Food was too cheap

Rents in the high street will come down because the move to internet shopping means a business model has changed

Cheap fuel funded an import only economy (fuel was more expensive realtively in 1961)

These are structural longer cycle changes and the just happen to coincide with post 2007. I am no lover of Merv the swerve but he has a point in these areas - how wil higher interest rates reduce the inflation pressures from oil and energy costing more full stop?

Interesting read, thank you.

[Arbitrage]

http://www.telegraph.co.uk/news/8652330/Food-sales-fall-by-highest-amount-since-1980s.html

Food sales fall by highest amount since 1980s

Sales volumes in supermarkets – the number of products that people paid for at the tills – dropped by 4.2 per cent in June compared to the year before, official figures from the ONS show. This is the biggest fall since the ONS started collating the figures in 1988.

Food sales by value will still be rising. - due to inflation

Marks and Spencer play this trick - last month they reported that their food sales had increased - that'll be by value - not that they mentioned that.

They'll discount actual sales by official CPI inflation to report the underlying sales growth.

However, as food inflation > CPI the result is a reported rise in M&S's food sales: magic!

The same basic principle applies to GDP and reported economic growth: under-report inflation and you'll report fake economic growth

[Greg Bowman]

1 I'm not so sure much of it was ever actually cheap, just cheaper than some places

2 There will be some people who were just about managing to eat enough of a good diet to prevent their health deteriorating, the price rises will jeopardise their being able to continue with that

3 I agree if obesity falls it will help the system cope with those who suffer as above

1. Not so sure went to Italy in the early 80's with my then girlfriend now wife and decided to cook a spag bol. Asked for 500g of meat and the butcher practically got it out of a safe, we were used to effecively wasting meat to suit our Anglo Saxon tastes.It was about 4 times what we would pay for meat in the UK at the time.

2. I am not heartless (I hope) but for the majority of the UK they can cut back a long way and still have a healthy diet sort of Alvin Hall for the food industry

Of course there will be people at the margins and therefore deserve help

[Greg Bowman]

Interesting read, thank you.

Thank you and now must fix a washing machine to prevent buying a new one and should be looking up part nos which my wifey thinks I am doing!

Have a good day

[profitofdoom]

They wish! If I remember correctly, I think I've read a couple of articles showing that the cheapest food is mostly the fattiest (frozen filth etc).

I'm actually a bit worried about this winter. Summer's fine - I love cheap salad etc. But in winter when I want something meatier/heavier/more expensive I wonder if my budget will stretch as far as I'd like it to.

I do tend to agree with OP tho. If ppl are starring to cut back on food, it can't be long till the masses start to think where else they can make savings - unreasonable mortgage, rent payments etc and as car ownership is already declining, there cant be much more room for movement without houseprices being effected...?

There are stacks of cheap/healthy options.I resent spending big money on food but most expensive stuff is processed.I often have scrambled eggs for my main meal. 4 free range eggs 50p + 3 slices of seed bread.Main meal about 70p and 5 minutes prep, 2 minutes washing up.

[Mrs Bear]

They wish! If I remember correctly, I think I've read a couple of articles showing that the cheapest food is mostly the fattiest (frozen filth etc).

I'm actually a bit worried about this winter. Summer's fine - I love cheap salad etc. But in winter when I want something meatier/heavier/more expensive I wonder if my budget will stretch as far as I'd like it to.

IMO it can be cheaper to eat well in winter - lovely thick soups full of fresh veg and lentils, pearl barley, etc. And you can make really tasty stews/casseroles out of cheaper cuts, esp. lamb. Neck of lamb - very cheap - cooked slowly with a handful of pearl barley chucked in is delish. Best to make in advance, though, to cool, skim fat off and take the meat off the bones. But hard to beat on a cold and wintry night.

[tahoma]

For all you egg lovers, I got three ex-battery hens from the BHWT. Three eggs a day like clockwork that work out one third the price and three times as delicious as supermarket eggs.

Plus they make great pets.

[Dorkins]

I am no lover of Merv the swerve but he has a point in these areas - how wil higher interest rates reduce the inflation pressures from oil and energy costing more full stop?

By allowing other things to fall in price as oil and energy rise?

A stable price level doesn't mean nothing changes, it means for every rise there is a fall elsewhere. But then, Merv doesn't give a toss about stable prices.

[pl1]

For all you egg lovers, I got three ex-battery hens from the BHWT. Three eggs a day like clockwork that work out one third the price and three times as delicious as supermarket eggs.

Plus they make great pets.

Interesting Website thanks. As I always see things obliquely, scanning through it was a real indicator of how charities work and how aggressive or otherwise they are with lobbying, campaigning, endorsing and the whole inchilada. I think I will have scrambled eggs today as mentioned.

As for food inflation I agree with it being too cheap for too long and people plodding around supermarkets with donuts moaning about it are being lazy in their choices. Maybe it is a good thing. I made a spagbol last all week this week. Demand destruction will occur for all the junk (they can't keep going up in price forever) and a gastro-filter will leave us buying the rest of the best. This is already happening with major discouts on what must clearly be the non-sellers (which makes you realise how much the mark-up must have been in the first place).

Edited July 23, 2011 by pl1