UK inflation rises to highest level in almost 30 years at 5.4%

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Re: UK inflation rises to highest level in almost 30 years at 5.4%

Postby rebbonk » Wed Jan 04, 2023 8:59 pm

We are being mugged off by greed. It really is time that the UK population opened their own eyes and stopped believing the media. - I doubt it'll happen in my lifetime!
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Re: UK inflation rises to highest level in almost 30 years at 5.4%

Postby dutchman » Tue Feb 28, 2023 6:11 pm

UK grocery price inflation hits record 17.1%

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British grocery inflation hit 17.1% in the four weeks to Feb. 19, another record high, dealing the latest blow to consumers struggling with a cost-of-living crisis, industry data showed on Tuesday.

Market researcher Kantar said prices are rising fastest in markets such as milk, eggs and margarine.

It said UK households now face an additional £811 on their annual shopping bills if they don't change their behaviour to cut costs.

"This February marks a full year since monthly grocery inflation climbed above 4%. This is having a big impact on people’s lives," Fraser McKevitt, head of retail and consumer insight at Kantar, said.

He said its research found that rising grocery prices are the second most important financial issue for the public behind energy costs. Also a quarter of people say they're struggling financially, versus one in five this time last year.

After a tough 2022, British consumers are facing a further squeeze on their finances this year as the government cuts back support on household energy bills and mortgage rates rise.

However, Official data published this month did show overall UK consumer price inflation fell to 10.1% in January, the lowest reading since September, while confidence data from market research firm GfK last week showed consumers had turned more upbeat about their personal finances.

Kantar said that sales of own label products were up by 13.2% in February, well ahead of growth in branded products, which are generally more expensive, of 4.6%.

Kantar said UK grocery sales increased 8.1% over the 12 weeks to Feb. 19, masking a drop in volumes when accounting for inflation.

German-owned discounters Aldi and Lidl were again the fastest growing grocers, partly due to new store openings, with sales up 26.7% and 25.4%, respectively.

Market leader Tesco's sales rose 6.6%, with Sainsbury's up 6.2% and Asda up 5.9%.

Morrisons was again the laggard, with a sales decline of 0.9%.

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Re: UK inflation rises to highest level in almost 30 years at 5.4%

Postby dutchman » Thu Mar 23, 2023 6:26 pm

Veg shortages drive surprise jump in UK inflation

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The cost of living rose more than expected last month as salad and vegetable shortages helped push up food prices at the fastest rate in 45 years.

Alcohol prices in restaurants and pubs also drove up costs for households, as inflation jumped to 10.4% in the year to February from 10.1% in January.

Clothing costs, particularly for children and women, rose last month but fuel prices continued to fall.

The surprise figures come ahead of a decision on interest rates on Thursday.

The UK's central bank, the Bank of England, will decide whether to increase, lower or hold rates as it continues its battle to curb inflation.

It has put up interest rates 10 times since December 2021, as it seeks to make borrowing money more expensive and encourage people to spend less, with the aim of stopping prices rising so quickly.

To calculate inflation, which measures how prices change over time, the Office for National Statistics (ONS) tracks the prices of hundreds of everyday items.

It said the continued rise in food costs had been a big factor in February's inflation figure, coming at a time when supermarkets were experiencing shortages of some salad items and vegetables.

Tomatoes, peppers and cucumbers were among the goods affected as extreme weather in Spain and North Africa impacted harvests, and high energy prices hit growers in the UK. Problems with supply chains also contributed to the problem.

Along with higher prices for milk, olive oil and eggs, the ONS said the shortages helped push food inflation to 18.2% - the highest since 1978.

So called "core inflation" - which strips out items such as food, energy, alcohol and tobacco which can fluctuate in price - also unexpectedly rose jumping from 5.8% to 6.2%.

Lucianne Allen is sales and marketing director at Aubrey Allen, a wholesale butchers in Coventry which also has a retail shop in Leamington Spa.

She told the BBC that packaging and transport were two areas where costs had risen considerably.

"We've had to pass on some of that cost in the last 12 months, but we've absorbed some of it.

"I hope we've seen a peak [in price rises] but inflation continues to be very real and very present."

:bbc_news:
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Re: UK inflation rises to highest level in almost 30 years at 5.4%

Postby dutchman » Thu Mar 23, 2023 6:28 pm

It was only a 'surprise' to people who don't live in the real world: politicians, bankers and BBC reporters! :fuming:
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Re: UK inflation rises to highest level in almost 30 years at 5.4%

Postby dutchman » Wed Apr 19, 2023 9:04 pm

UK inflation falls by less than expected as food prices soar by 19.1%

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UK inflation fell by less than expected in March, staying in double figures as households came under pressure from food and drink prices soaring at their fastest annual rate since 1977.

The Office for National Statistics (ONS) said annual inflation as measured by the consumer prices index fell to 10.1% last month, resuming a downward trajectory after an unexpected rise to 10.4% in February. Inflation peaked at 11.1% in October.

However, economists had forecast a larger decline in the annual inflation rate to 9.8%. The odds of the Bank of England raising its base interest rate next month jumped on the news, with markets pricing in a 97% chance of an increase to 4.5% on 11 May, and indicating it could hit 5% by the autumn.

The smaller than expected inflation dip comes after a fall in global oil prices over recent months, reflecting a sharp drop in petrol and diesel prices for motorists, and as the immediate consequences of Russia’s invasion of Ukraine in February 2022 drops from the annual comparison.

However, those falls were offset by the price of food and nonalcoholic drinks accelerating by 19.1% in the year to March, fuelled by record growth in the price of bread and cereals, as well as a sharp rise for biscuits and cakes.

The increases add to pressure on the poorest households in Britain in particular, who spend a larger share of their income on basic essentials than richer ones.

The ONS said fruit, chocolate and confectionery, and meat prices all soared, while the price of ready meals and sauces, and hot beverages rose at the fastest annual rate since comparable records began in 1989.

Rachel Reeves, the shadow chancellor, said the government was failing to take enough action to support households struggling with the soaring cost of living, adding: “The question for families remains as real as ever – when will they feel better off under this Conservative government?”

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Re: UK inflation rises to highest level in almost 30 years at 5.4%

Postby dutchman » Wed Apr 19, 2023 9:05 pm

The chancellor, Jeremy Hunt, said the government remained on track to meet its target of halving the annual inflation rate this year.

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Re: UK inflation rises to highest level in almost 30 years at 5.4%

Postby dutchman » Thu May 25, 2023 5:04 am

UK inflation: Food prices 'worryingly high' as sugar and milk soar

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Food prices in the UK continued to surge at the fastest rate in nearly 45 years in April, with staples like sugar, milk and pasta up sharply.

The rate at which grocery prices rose slowed marginally in the year to April, but at 19.1% is close to record highs.

It comes as the overall UK inflation rate fell sharply to hit single figures for the first time since last August.

However, it did not decline as much as expected and the chancellor said food prices remained "worryingly high".

Inflation is a measure of the cost of living and to calculate it, the Office for National Statistics (ONS) keeps track of the prices of hundreds of everyday items, known as a "basket of goods".

The rate has shot up over the last 18 months, as food and energy prices have soared, leaving many household feeling squeezed.

Inflation was 8.7% in the year to April - down from 10.1% in March but above the 8.2% figure expected.

However, it does not mean prices are coming down, only that they are rising less quickly.

Chancellor Jeremy Hunt told the BBC the sharp fall was "welcome", but admitted: "There are things underneath those numbers which show that this battle is far from over.

"We've got a long way to go."

Inflation has dropped due to the fact that energy price rises are slowing from the extreme hikes seen a year ago just after Russia, a major oil and gas producer, invaded Ukraine and was hit with sanctions.

Ukraine is also a big producer of grains and sunflowers, which are used in everything from bread to oil and animal feed. Wholesale food prices have risen because the war has disrupted Ukraine's shipments.

Extreme weather has also hit crops, including the beets used to make sugar as well as some vegetables.

However, while food price continue to rise at near-record rates, the prices of staples like bread, cereal, fish, milk and eggs are rising slightly less quickly.

"If you look at what prices businesses are facing and how much they're paying for domestic food materials, that has come down from over 15% annually last month to under 10% this month," ONS chief economist Grant Fitzner said.

The prices that companies are paying for imported foods have also fallen "considerably".

However, he said: "Of course, those aren't reflected on supermarket shelves yet."

:bbc_news:
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Re: UK inflation rises to highest level in almost 30 years at 5.4%

Postby dutchman » Sun May 28, 2023 2:07 pm

Plans for supermarket price cap on basic food

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The government is discussing plans for supermarkets to introduce a cap on the price of basic food items to help tackle the rising cost of living.

A voluntary agreement with major retailers could see price reductions on basic food items like bread and milk.

Food prices rose by 19.1% in the year to April - its second highest rate in 45 years.

Downing Street sources have stressed that there are no plans for a mandatory price cap.

The idea of a cap or freeze on basic food items, as first reported by the Daily Telegraph, is said to be at the "drawing board stage".

Supermarkets are expected to be allowed to select which items they would cap and only take part in the initiative, modelled on a similar agreement in France, on a voluntary basis.

Health Secretary Steve Barclay told BBC One's Sunday with Laura Kuenssberg programme that "this is about having constructive discussions with supermarkets about how we work together, not about any element of compulsion".

He added that the government was also keen to protect "suppliers who themselves face considerable pressures".

For Labour, the shadow work and pensions secretary Jonathan Ashworth told the same programme that the reports were "extraordinary", saying "Rishi Sunak is now like a latter day Edward Heath with price controls".

:bbc_news:
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Re: UK inflation rises to highest level in almost 30 years at 5.4%

Postby rebbonk » Sun May 28, 2023 9:45 pm

What happened to Thatcher's beloved 'free market' which she told us would keep prices low? :rolling: :rolling: :rolling:
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Re: UK inflation rises to highest level in almost 30 years at 5.4%

Postby dutchman » Mon May 29, 2023 3:31 am

Price caps will create food shortages, Rishi Sunak warned

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Rishi Sunak has been warned his plan for “1970s-style” price caps will lead to food shortages amid a backlash from cabinet ministers and supermarkets.

Downing Street is planning to ask retailers to agree to maximum prices for some basic goods such as bread and milk in an effort to lower food prices and tackle inflation.

But the proposal has been condemned by the major supermarkets and has angered at least two Cabinet ministers, who said it would involve too much interference in the markets and could lead to shortages as suppliers take their goods abroad.

One cabinet minister told The Telegraph that price caps, last used in Britain in the 1970s, would not work “in this day and age” and that produce would be “sold elsewhere” if supermarkets refused to increase their prices.

Tesco, Sainsbury’s, Morrisons and Waitrose backed a statement by the British Retail Consortium (BRC) that said the plan, first revealed in The Telegraph, “will not make a jot of difference to prices” and accused Mr Sunak of “recreating 1970s-style price controls”.

One retail boss said: “It is a hare-brained idea, and instead of trying to intervene in supermarket pricing, the Government would be better advised to address the root causes of inflation.”

A Cabinet minister said: “There is an international market for wheat and it is quite expensive after what’s happened in Ukraine. If you drive down the price of bread, it can be sold elsewhere.

“You can’t interfere in markets, it doesn’t work in this day and age. We live in global markets and it’s very different to what happened in the 70s and after the war.”

A representative for a second Cabinet minister confirmed they opposed the policy.

Bill Grimsey, the former boss of Iceland, told The Telegraph that price controls in the 1970s had been “very bureaucratic and did not work” but that ministers were right to be concerned about prices today because the market was “not competitive enough, at a real time of need for consumers”.

An industry source warned shelves of basic goods could be emptied by the policy, worsening the egg shortage caused by high energy prices and avian flu measures.

“If they can’t get fair prices for their products, farmers could just stop producing, which is what happened with eggs,” they said.

“Or they could switch production into something they could get a fair price for, which is not subject to a price cap.”

In a statement on behalf of the industry, the BRC suggested supermarkets would reject any suggestion to lower their prices at the behest of ministers.

Andrew Opie, the organisation’s director of food and sustainability, said: “This will not make a jot of difference to prices. High food prices are a direct result of the soaring cost of energy, transport, and labour, as well as higher prices paid to food manufacturers and farmers.

“Yet despite this, the fiercely competitive grocery market in the UK has helped to keep British food among the most affordable of all the large European economies.

“Rather than recreating 1970s-style price controls, the Government should focus on cutting red tape so that resources can be directed to keeping prices as low as possible.”

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