UK Inflation Rate

michaels

ilovehouses wrote: »

I think a lot of the food inflation is coming from the retailers themselves i.e. they're buncing - putting up a retail price without having taken a supplier cost price increase and just blaming brexit.

Supplier price increases are going through but its a tough process and suspect it'll still be months before the referendum devaluation gets priced in.

Wetherspoons are at it too. They've increased prices ahead of their cost increases and expanded margins.

Anecdotal over.

As the plural of anecdote is data....our local Morrisons has recently had a makeover and has raised prices throughout the store.

What I find interesting is that supermarkets seem to recover when they give up trying to compete with the discounters and instead raise prices.

Arguably Sainsburys did this first, positioning itself well upmarket of Tesco, Morrisons and Asda with eye-watering prices to match (and losing our custom in the process). Followed by Tesco who also turned round their decline with higher prices and now Morrisons have done the same thing over the last few months - higher prices and less deep discount loss leaders and sure enough they are now recovering leaving only Asda who try to compete mostly on price and continue to suffer sales falls.

Note Sains and Tesco also dropped/weakened price match promises and Morrisons never had one.

HAMISH_MCTAVISH

ilovehouses wrote: »

Supplier price increases are going through but its a tough process and suspect it'll still be months before the referendum devaluation gets priced in.
.

Wholesale food inflation has been fluctuating between 7% and 9% for the last few months...

“The weakened value of the pound is inevitably having a profound impact on wholesale prices in the UK and in some categories, such as vegetables, the threat of insufficient migrant labour is already threatening to constrain domestic supplies,” added Graeme Loudon, commercial director at CGA

http://www.cga.co.uk/2017/08/30/food-price-inflation-falls-to-7-but-prices-still-rising-in-key-categories-says-fpi/

Retailers and food-service companies have suffered margin compression for a while now as they've been slow to pass through the price increases.

Sainsbury's sees 9% fall in half-year profits despite rising sales

The supermarket chain says keeping price rises down has contributed to a fall in profits.

https://news.sky.com/story/sainsburys-sees-9-fall-in-half-year-profits-despite-rising-sales-11119217

BobQ

ilovehouses wrote: »

I think a lot of the food inflation is coming from the retailers themselves i.e. they're buncing - putting up a retail price without having taken a supplier cost price increase and just blaming brexit.

Supplier price increases are going through but its a tough process and suspect it'll still be months before the referendum devaluation gets priced in.

Wetherspoons are at it too. They've increased prices ahead of their cost increases and expanded margins.

Anecdotal over.

Does it matter where it comes from?

BobQ

The real price sizes come from dwindling pack sizes

Thrugelmir

BobQ wrote: »

The real price [STRIKE]sizes[/STRIKE] rises come from dwindling pack sizes

Can only last so long.

molerat

Where has the 10% rise in milk come from ? 99p last week, £1.09 today.

michaels

molerat wrote: »

Where has the 10% rise in milk come from ? 99p last week, £1.09 today.

Morrisons did this a about a month ago - didn't know any of the other supermarkets had followed suit?

Checking mysupermarket I see everyone has now except Iceland although Morrisons have hiked the 6 pinters that we buy if they are in stock. ( normally they ar enot in Morrisons, a deliberate cynical policy to get punters back into the store more frequently)

Thrugelmir

molerat wrote: »

Where has the 10% rise in milk come from ? 99p last week, £1.09 today.

Good value still.

worldtraveller

Inflation, as measured by the Office for National Statistics' Consumer Prices Index (CPI), was 3.1% in November 2017, up from 3.0% in October 2017.

Main points

• The Consumer Prices Index including owner occupiers’ housing costs (CPIH) 12-month inflation rate was 2.8% in November 2017, unchanged from October 2017.
• The Consumer Prices Index (CPI) 12-month rate was 3.1% in November 2017, up from 3.0% in October 2017; it was last higher in March 2012.
• The largest upward contribution to change in both the CPIH and CPI rates came from air fares which fell between October and November but by less than a year ago.
• Rising prices for a range of recreational and cultural goods and services, most notably computer games, also had an upward effect.
• Falling prices in the miscellaneous goods and services category (covering products such as travel goods and financial services) provided the largest offsetting downward contribution.

ONS

gfplux

The Brexit Blight just keeps on giving.