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Soaring Cost Of Food Fuels Shop Price Inflation

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http://www.guardian.co.uk/business/2008/au....economicgrowth

• Shop prices in July up 3.2% on 2007

• Retailers passing on extra costs they face

Inflation on the high street soared in July to reach its highest in more than 18 months, with food nearly 10% more expensive than a year ago, a survey published today showed.

According to the British Retail Consortium (BRC) shop price deflator, shop prices last month were 3.2% higher than a year ago. This is a significant increase on June's year-on-year shop price inflation figure of 2.5%, and is the biggest increase since the survey began in December 2006.

Annual food price inflation hit 9.5% in July, up from 7% in June. Non-food prices edged up by 0.1% year-on-year in July. This was down from a rise of 0.2% in June.

Stephen Robertson at the BRC said: "Our figures show that some non-food goods, including electricals and clothing, are cheaper than they were a year ago. Both food and non-food prices are going up more slowly than gas or petrol bills. Overall food prices are rising but retailers are keeping increases well below the extra supply and operating costs they face.

"Falls in the prices of oil and some world food commodities, such as wheat and soya, provide hope but most retail costs remain sharply up on a year ago and are still rising."

This news will put more pressure on the Bank of England's monetary policy committee, which is battling the twin risks of rising inflation and the possibility of Britain entering recession. The Bank's committee will announce their decision for this month's interest rates on Thursday.

Howard Archer, the chief UK and European economist at Global Insight, said today's sharp rise in the shop price deflator was worrying news for the Bank.

"While shop prices continue to be pushed up primarily by high food prices, the Bank of England will also note that non-food prices edged up year-on-year for a second month running in July after extended falls.

Food is relatively inelastic for some reason, it may have something to do with the fact we can't survive more than a couple days without food..... Interest rates will do f*** all to sort this out, unless they happen to magic to more food from somewhere, perhaps Mystic Merv has got some magic beans???

Maybe interest rates will stop monsoons sweeping Burma?? Mystic keeps telling us they are a very flexible tool so maybe they can influence the weather?

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http://www.guardian.co.uk/business/2008/au....economicgrowth

Food is relatively inelastic for some reason, it may have something to do with the fact we can't survive more than a couple days without food..... Interest rates will do f*** all to sort this out, unless they happen to magic to more food from somewhere, perhaps Mystic Merv has got some magic beans???

Maybe interest rates will stop monsoons sweeping Burma?? Mystic keeps telling us they are a very flexible tool so maybe they can influence the weather?

Inflation has grown at a faster rate than the 1970s,

This is a video of the UK Labour Party Political Broadcast - Feb 1974 ,

which has a section on the price of food going up with examples.

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Anecdotal I know, but has anyone else noticed that the clothing sales this summer seem to be everywhere? It is seasonal, but it will be interesting to see the effect of recent sales on the upcoming inflation numbers. Also, the effect of the sales ending in the next few months.

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asides from all the numbers put out (cpi rpi etc.) I wonder what the average person's inflation rate is.

most of the things that you really need to buy no matter what, fuel, heating, food, taxes, tuition, etc seem to be up massively.

it may be nice that plasma televisions have come down a bit, but if you can't afford to buy one anyway, it isn't much help.

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Anecdotal I know, but has anyone else noticed that the clothing sales this summer seem to be everywhere? It is seasonal, but it will be interesting to see the effect of recent sales on the upcoming inflation numbers. Also, the effect of the sales ending in the next few months.

I spent 6 weeks in Europe (June-July) this year and everywhere I travelled (Italy, Spain and France) had sales on clothing. Quite a few places were heavily discounting (i.e. 40-50%). I think this is partly the usual season change, but the reason for the heavy discounts is the lack of sales in the preceding 3 months. Plenty of other shops had sales on, but with clothing it was across the board.

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Anecdotal I know, but has anyone else noticed that the clothing sales this summer seem to be everywhere?

In the last RPI report they selected clothing and footwear as the biggest downward trends , 4.2% and 7.5%.

"There was a large downward pressure from clothing and footwear where price discounting was greater than last year."

http://www.statistics.gov.uk/cci/nugget.asp?ID=19

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In the last RPI report they selected clothing and footwear as the biggest downward trends , 4.2% and 7.5%.

"There was a large downward pressure from clothing and footwear where price discounting was greater than last year."

http://www.statistics.gov.uk/cci/nugget.asp?ID=19

This is interesting, as I remember last year there were mammoth clothing sales - everywhere, and for a much more protracted period of time too... Last year, it was blamed on the appalling weather (which was fair enough - with all the floods etc, there really wasn't much of a summer here at all....) everyone on here was busy saying that it was more likely due to people feeling the pinch etc, and just not buying.

For this year to be worse than last year, really says something!

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Pensioners and those on benefits spend most of their money on food. You can be sure they wont give them a 10% rise to cover this.

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  • 399 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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