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NEWS STORY
FOOD PRICE EXPLOSION “INACCURATE SCARE”
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| January 15, 2008 |
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Claims of dramatic increases in food prices are alarmist and unsupported by the evidence, said the British Retail Consortium (BRC). BRC Chief Kevin Hawkins pointed out that intense competition between food retailers is continuing to keep prices down, with retailers absorbing much of the impact of increasing costs themselves.
The BRC's Shop Price Index samples 3,700 prices of food items in stores of all sizes across the UK. It shows, at 3.8 per cent year-on-year, food prices actually rose less in December than the previous month.
BRC Director General Kevin Hawkins said: "Anyone can price a limited and highly selective basket of goods and produce an inaccurate scare story. Poor harvests, unfavourable exchange rates and changing patterns of world demand have pushed up the price of some items but there is no food price explosion. The rate of food inflation is actually slowing while overall shop-price inflation is stable.
"With average operating margins of only four per cent and their own costs shooting up there is only so much supermarkets can do but the figures actually show the strength of competition in the grocery market protecting customers from what would otherwise be severe prices rises.
"Contrary to alarmist predictions customers will continue to benefit as retailers go on doing all they can to avoid passing cost increases on."
Media Contacts: BRC Press Office 020 7854 8924 Out of hours 07921 605544
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