Price Of Groceries Rising At Lowest Rate Since 2006

[interestrateripoff]

http://www.theguardian.com/business/2014/jul/01/price-groceries-rising-slow-supermarkets

The price of groceries is rising at its slowest pace since 2006 due to heavy price competition sparked by the rise of the discounters Aldi and Lidl and falling commodity costs.

But while shoppers enjoyed a low 0.8% rate of inflation in the 12 weeks to 22 June, there was also good news for retailers as the grocery market picked up the pace of sales growth to 2.8%, according to the latest data released by industry analysts Kantar Worldpanel.

The pick-up in trade will be welcome news for food retailers after the market last month recorded its weakest performance in 11 years, with growth falling to 1.7%. However, Fraser McKevitt, consumer insight consultant at Kantar, said the apparent improvement was largely down to the timing of Easter, which boosted the latest figures.

"Underlying it's still a very soft market. The volume [of goods being sold] is flat or growing only slowly and there is an incredibly low inflation environment," he said

Terrible news for those that fear deflation and want to pay more for food! Won't someone think about the loss of the exponential GDP figure if we don't have constantly high food inflation.

[200p]

We are in a strange part of the cycle where leaner entrants such as the discounters can undercut the big supermarkets. Price is falling at the cost of squeezed margins. At some point one of the big supermarkets will drastically downsize and then supply will be squeezed.

When supply drops, and demand stays the same, prices will rise again. But I have no idea of timing, bar droughts, and famines in other parts of the world etc.

[winkie]

We are in a strange part of the cycle where leaner entrants such as the discounters can undercut the big supermarkets. Price is falling at the cost of squeezed margins. At some point one of the big supermarkets will drastically downsize and then supply will be squeezed.

When supply drops, and demand stays the same, prices will rise again. But I have no idea of timing, bar droughts, and famines in other parts of the world etc.

So when supply drops jobs are lost so less money in the system to pay extra for the same quantity of food......looking at the amount of waste both from producers, retailers and consumers there is plenty of excess about....cut that first then cut out the wrong foods and eat less but more of the right foods.....save money,keep fit and keep healthy.

[dances with sheeple]

Every Little Helps!

[Sour Mash]

We are in a strange part of the cycle where leaner entrants such as the discounters can undercut the big supermarkets. Price is falling at the cost of squeezed margins. At some point one of the big supermarkets will drastically downsize and then supply will be squeezed.

When supply drops, and demand stays the same, prices will rise again. But I have no idea of timing, bar droughts, and famines in other parts of the world etc.

There's supposedly a lot of inflation coming down the line in the form of price rises on food commodities which should be starting to work their way through to consumer prices very soon.

As for the 'low inflation' on food, a lot of the price increases have been disguised through smaller packaging amounts and reduced quality. Of course, since the 2008 crash the rising price of food has completely outstripped any rise in incomes of the average person.

[Sour Mash]

So when supply drops jobs are lost so less money in the system to pay extra for the same quantity of food......looking at the amount of waste both from producers, retailers and consumers there is plenty of excess about....cut that first then cut out the wrong foods and eat less but more of the right foods.....save money,keep fit and keep healthy.

There's certainly a lot of excess to be cut by many in the West. Less so for people in other societies around the World who also experience food price inflation.

[winkie]

There's certainly a lot of excess to be cut by many in the West. Less so for people in other societies around the World who also experience food price inflation.

There is enough to go around except some have far too much and waste some of it and others do not have enough to eat.....rising populations along with rising food prices, shelter and fuel will be the way forward....all about distributing needs fairly.....but the way of the world is those with the most and the most money take more than their fair share of the available resourses, far more than they will ever need.

[dkujsbap]

Nice spin on the headline. First four words would have done.

[bomberbrown]

This is not happening at my Local Sainsbrys. A lot of my 2 for £'n' regular purchases have risen by 50p or £1 recently. eg. 2 x bacon is now £4.50 when it was £4.

[onlyme2]

Prices rising fast in the US, particularly meat products. Pound strength may be helping mask global price changes.