U.K. Food Price Deflation Reaches Record Low
Cheaper food at grocery stores in both nations may mean savings for shoppers, but others are being pinched.
Let's start with the U.S. Here's an excerpt from an Aug. 29 Wall Street Journal article:
The U.S. is on track this year to post the longest stretch of falling food prices in more than 50 years, a streak that is cheering shoppers at the checkout line but putting a financial strain on farmers and grocery stores.
The trend is being fueled by an excess supply of dairy products, meat, grains and other staples and less demand for many of those same products from China and elsewhere ...
In the U.K., food price deflation has dropped to a record low.
Here's an excerpt from a Sept. 5 Telegraph article:
Shop prices fell by 2pc in August compared to a year ago, after a drop of 1.6pc the previous month, as soft oil prices, an oversupply of wheat and competition among retailers took pressure off consumers’ pockets.
Food deflation accelerated to a record low, falling 1.1pc, an increase from 0.8pc in June and July, according to the monthly BRC-Nielsen Shop Price Index.
This is the first time food prices have fallen by more than 1pc annually since the index was started in December 2006. Wheat prices fell to a decade low after good harvests, offsetting a rise in dairy, meat and sugar prices.
You can read the entire article from The Telegraph by following the link below: