3 minute read
Business Intelligence
by 55 North
SHOP PRICES: BRC / NIELSENIQ
Higher food prices looming
Food prices fall for the fifth consecutive month, but mounting pressures mean this will not be sustainable for much longer.
Food deflation slowed to 0.2% in August from July’s deflation of 0.4%, the fifth consecutive month when food prices fell, new research reveals.
The BRC-NielsenIQ Shop Price Index for August shows fresh food prices fell for the ninth consecutive month in August, with deflation easing to 0.6% from a decline of 1.0% in July. This is in line with the 12-month average price growth rate of -0.6% and below the six-month average price growth of -0.9%.
In addition, ambient food inflation eased to 0.3% in August, down from 0.5% in July. This is below the 12- and six-month average price increases of 1.5% and 0.8%, respectively.
Meanwhile, non-food deflation slowed to 1.2% in August, compared to a fall of 1.8% in July.
Overall shop price deflation eased to 0.8% year-on-year in August compared to July’s decrease of 1.2%.
Mike Watkins, Head of Retailer and Business Insight at NielsenIQ, said: “The good news for shoppers is that shop price inflation remains below consumer price inflation and any moderate increases in prices are being driven by wider economic conditions and seasonal supply changes. With shoppers now returning from their summer holidays many will be reviewing their household budgets. So the next few months will be an important time for retailers to keep prices stable by absorbing as much of any increase in their supply chain costs as possible.”
Helen Dickinson, Chief Executive of the British Retail Consortium, added: “Food retailers are fighting to keep their prices down as far as possible. But mounting pressures – from rising commodity and shipping costs as well as Brexit-related red tape, mean this will not be sustainable for much longer, and food price rises are likely in the coming months.”
REGIONAL FOOD TRENDS
Regional shopping habits revealed
Research shows UK veganm confectionery, tobacco and alcohol hotspots
London is the most vegan area in the UK, a new nationwide survey has found.
The research, by commercial kitchen specialist Maxima Kitchen Equipment using Office for National Statistics data, reveals that Londoners devote the smallest proportion of their food shop to meat.
Londoners spend 20% less on meat than Northern Ireland, which is officially the least vegan region in the UK.
Residents of Northern Ireland spend 11% less on fruit and veg and over 10% more on meat than the national average for all areas in the UK.
The research reveals London also spends more of its food shopping budget on fruit and vegetables than any region in the UK. Londoners spend 37.5% more on fruit and vegetables than households in Northern Ireland, where residents spend the least amount of their weekly shopping budget on fruit and veg.
The UK’s second most vegan region is the South East, where residents spend 31% more on fruit and veg than Northern Ireland. Households in the South East also spend 11% less on meat than the UK national average.
The research also shows that Northern Ireland is the UK’s biggest sugar lover. Households in the region spend 23% more on sweet treats than London and Yorkshire on the Humber, the areas which spend the least on sugary food and drink.
It appears that Scotland, the NorthEast and the West Midlands are also sweet-obsessed, spending 15% more than London and Yorkshire on sweet drinks, chocolate, ice-cream, and other confectionery.
Meanwhile, Scotland is the biggest spender when it comes to alcohol and tobacco, with residents devoting over a fifth of their weekly food budget to the products – 50% more than London, the region, which buys the least alcohol and cigarettes.
London reigns as king of the carbs, spending more of its food budget (10%) on items such as bread, pasta and rice than any other UK area, the research finds.London reigns as king of London spends more of its food shopping the carbs, spending more of budget on fruit and vegetables than any region its food budget (10%) on items in the UK. Scotland, the North East and the such as bread, pasta and rice
