London Daily

Focus on the big picture.
Wednesday, May 31, 2023

UK inflation: Supermarkets say price rises will ease soon

UK inflation: Supermarkets say price rises will ease soon

A drop in the cost of wholesale food prices globally has not led to falls in the prices charged by UK supermarkets.

Inflation was expected to fall below 10% last month but soaring food prices meant it fell by less than expected.

"You would expect to see [global food price falls] reflected in supermarkets but we're not there yet," the Office for National Statistics told the BBC.

The retail industry body said there was a three to nine-month lag to see price falls reflected in shops.

"As food production costs peaked in October 2022, we expect consumer food prices to start coming down over the next few months," the British Retail Consortium said.

Inflation, which measures the rate of price rises, fell to 10.1% in the year to March from 10.4% in February, driven by food prices rising at their fastest rate for 45 years.

There were big jumps in prices for products including olive oil (up 49%), milk (up 38%) and ready meals (up 21%).

Campaigners point out that rising food prices hit poorer households the hardest, as they spend a greater proportion of their income on groceries.

The war in Ukraine has driven up food prices around the world, but the UK has faced other problems on top of this - from Brexit red tape to labour shortages.

This year in particular, bad weather abroad led to shortages of some vegetables - a situation made worse by UK farmers producing less due to surging energy costs.

UK farmers have also argued that supermarkets are not paying a fair price for their produce - something the supermarkets deny.

The government's former food tsar Henry Dimbleby has said supermarkets having "fixed-price contracts" with suppliers means that when food is scarce, some producers opt to sell less to the UK and more elsewhere in Europe.

Grant Fitzner, chief economist for the Office for National Statistics, which provides the figures, said the agency did not make forecasts. But he said it was "certainly within the realm of possibility" that double digit inflation is sustained at least for another month with food prices continuing as they are.


Jane from Blackpool has found the last five to six months tough on the purse, particularly with the weekly shop.

She told the BBC's Radio Five Live that she couldn't afford to eat breakfast or lunch. "For teatime we have a jacket potato with beans. A couple of times a week we'll add cheese to that because we're feeling a little bit more flush. And on a really good occasion we'll have tuna."

For many people like Jane, higher prices across the board have meant having to run on a tighter budget.

"We got a letter last month saying our mortgage rate is going to go up again. I listen to the news in the hope the mortgage rates are going to go down or something's going to give."

Inflation in the UK remains higher than in other Western countries, including the US, Germany, France and Italy. On Wednesday, new figures showed eurozone inflation eased to 6.9% last month, from 8.5%.

Analysts at Capital Economics said UK inflation had "risen further and stayed higher than elsewhere as the UK has experienced the worst of both worlds - a big energy shock, like the euro-zone, and labour shortages - even worse than the US."

UK energy prices are likely to come down quickly, it added, but the issues in the labour market would probably persist until late 2024.

Chancellor Jeremy Hunt said he was still confident that inflation would fall sharply by the end of the year.

He added: "We have a plan and if we're going to reduce that pressure on families, it's absolutely essential that we stick to that plan, and we see it through so that we halve inflation this year as the prime minister has promised."

But Rachel Reeves, Labour's shadow chancellor, said: "The reality is that under the Tories our economy is weaker, prices are out of control and never have people paid so much to get so little in return."

While food prices remained stubbornly high, petrol prices eased, bringing some relief for motorists.

Unleaded petrol prices peaked at about £1.90 in July and were down below £1.50 in March.

Falling inflation doesn't mean prices are falling, but just that the rate of price rises is slowing.


Simon Mellin, founder and chief executive of The Modern Milkman, a milk delivery service, said the food industry had faced soaring costs in recent months, with milk, eggs and packaging prices all going up.

He believes that food prices will start to stabilise, but will remain at a much higher level than they were this time last year.

"I'm really unsure if food prices will drop as much as everyone expects," he told the BBC.

"I expect some reductions but I wouldn't personally expect huge reductions in the next twelve months."

He said he was trying not to pass higher prices onto customers, but added that it was a balance the business had to tread.

The Bank of England has been raising interest rates to try and curb inflation. In March, the Bank increased rates for the eleventh time in a row, taking the main rate to 4.25%.

The idea is that when people have less money to spend, they buy fewer things, reducing the demand for goods and slowing price rises.

Following the latest inflation figures, Luke Bartholomew, senior economist at abrdn, said a further rate rise next month is now "likely", with inflation pressures proving "more persistent than the Bank of England expected".

Rate rises mean higher mortgage payments for some homeowners and those with loans. But they can also benefit savers if banks pass on the higher rate to customers.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

London Daily
Close
0:00
0:00
Drone Attack on Moscow's Wealthiest Neighborhoods Suspected to be Launched by Ukraine
You Are So Beautiful
UK Prime Minister Rishi Sunak to Hold Power Talks with President Biden in Washington
Postmodern Jukebox European Tour Version
AI ‘extinction’ should be same priority as nuclear war – experts
An old French tune (by Georges Brassens) Pomplamoose ft. John Schroeder
Elon Musk Meets Chinese Finance Minister in Beijing
Sattahip Motor Show 20
Prominent Hacker Forum RaidForums Suffers Substantial Data Breach
SONATE AU CLAIR DE LUNE - Moonlight sonata
Climate cultists thought they had sabotaged another beautiful event — then the cameraman had his revenge.
A kiss to build a dream on
Nvidia CEO Huang says firms, individuals without AI expertise will be left behind
Wonderful Tonight - Eric Clapton (Boyce Avenue acoustic cover)
WPP Revolutionizes Advertising with NVIDIA's AI Powerhouse
Mean Blues
Two US Employees Fired For Chasing Robbers Out Of Store As They Broke ''Company Policy''
La Chansonnette
Pfizer, the EU, and disappearing ink - Smoke, Mirrors, and the Billion-Dose Pfizer Vaccine Deal: EU's 'Open Secret
Pattaya Addicts
Actor Tom Hanks told Harvard University graduates to be superheroes in their defense of truth and American ideals, and to resist those who twist the truth for their own gain
Franz Liszt - Liebestraum - Love Dream
The Sussexes' Royal Rebound: Could Harry and Meghan Markle Return to the UK?
Dream a little dream of me
A provocative study suggests: Left-Wing Extremism and its Unsettling Connection to Psychopathy and Narcissism
Unchained Melody sung like you've NEVER heard!
France Arrests 10 on Suspicion of Failing to Respond in Time to Migrant Drowning
Dave Brubeck - Take Five
Neuralink Receives FDA Approval for First-in-Human Clinical Study
Édith Piaf - Non, Je Ne Regrette Rien (Sofie)
Ukrainian Intelligence Official Admits to Assassination Attempts on Putin
Rondo Alla Turca
WATCH THIS: democracy in Russia is so bad!
Kiss of fire
Ed Davey: It is possible for a woman to have a penis
Tom Jones - I´ll Never Fall In Love Again 1967, 1989, 2001
Bernard Arnault Loses $11.2 Billion in One Day as Investors Fear Slowdown in US Growth Will Reduce Demand for Luxury Products
Israel Cachao López - Guajira Clásica
Russian’s Wagner Group leader: “I am not a chef, I am a butcher. Russia is in danger of a revolution like in 1917.”
Edward Maya - Stereo Love (feat. Vika Jigulina) (Extended Mix)
TikTok Sues Montana Over Law Banning the App
Strauss - Radetzky March - Karajan
Ron DeSantis Jumps Into 2024 Presidential Race, Setting Up Showdown With Trump
La vie en rose
Steve Jobs introducing Apple's iPhone, exactly 16 years ago.
The Temptations - My Girl (Smokey Robinson Tribute) 2006 Kennedy Cent
Banking Behemoth vs Ex-Boss: The PMorgan-Epstein Entanglement
Orlando Cachaito Lopez Redencion
China overtakes Japan as world's top car exporter
Edith Piaf - NON, JE NE REGRETTE RIEN
Banking Behemoth vs Ex-Boss: The PMorgan-Epstein Entanglement
RADETZKY MARCH-2008-Wien, New Year Concert
Elon Musk's SpaceX and Italy's Unipol join forces to help Italians hit by flooding
Only you (And you alone)
Talks between US House Republicans and President Biden's Democratic administration on raising the federal government's $31.4tn debt ceiling have paused
Strangers In The Night
Biden Administration Eyeing High-Profile Visits to China: The Biden Administration is heating things up by looking into setting up a series of top-level visits to Beijing by top officials in the coming months
Charles Aznavour - La Boheme
New evidence in special counsel probe may undercut Trump’s claim documents he took were automatically declassified
Summer time
A French court of appeals confirmed former President Nicolas Sarkozy's three-year jail term for corruption and influence peddling
Sting and Stevie Wonder - Fragile (from Sting's 60th birthday concert)
Debt Ceiling Crises Have Unleashed Political Chaos
Aux Champs Elysees
Weibao Wang, a former software engineer at Apple, was charged with stealing trade secrets related to autonomous systems, including self-driving cars
Stand By Me - Ben E. King (Boyce Avenue acoustic cover)
Mobile phone giant Vodafone to cut 11,000 jobs globally over three years as new boss says its performance not good enough
La Mer (Beyond the Sea) – Avalon Jazz Band
Elon Musk compares George Soros to Magneto, the supervillain from the Marvel Comics series.
She
Warren Buffett Sells TSMC Shares Over Concerns About Taiwan's Stability
Nathalie Song by Enzo Petrachi Stjepan Hauser Cello
New Study Finds That Secondary Bacterial Pneumonia Is a Major Cause of Death in COVID-19 Patients Who Require Ventilator Assistance
Shape of My Heart - Sting (Boyce Avenue acoustic cover)
Vienna: Passenger Plays Hitler Speeches on Train, Causes Panic
Radiohead - Creep
Remarkable video from our Fox drone team
Quizás,Quizás,Quizás - Andrea Bocelli - Jennifer Lopez
The official tapes of Trump's deposition in the E. Jean Carroll battery (rape) and defamation case have been released.
Perhaps, Perhaps, Perhaps - Multi-Couples
Here is the full video that the media are purposely not sharing
Pentatonix Havana
King Charles III being crowned.
Paula Cole - Autumn Leaves
Newly released video of Donald Trump’s rape trial deposition:
Oscar Benton Bensonhurst Blues
Video: Ukraine MP Punches Russian Representative At Global Meet
OH NANANA vs ABUSADAMENTE
Russia accused Ukraine of attacking the Kremlin with drones in an attempt to kill Putin
Nina Simone - ”I Put A Spell On You”. Vezi aici cum cântă Jeremy Ragsd
Ahead of King Charles’ coronation, British guards rehearse in the middle of the night in London
NIGHTWISH - The Phantom Of The Opera
Dutch court orders man who fathered 550 kids to stop donating sperm
Motorshow 2016 Tanjay Negros Oriental
Kim Kardashian Lookalike Christina Ashten Dies Of Cardiac Arrest, Hours After Plastic Surgery
Monica Bellucci - Ti Amo
Samsung has banned employees from using generative AI services such as ChatGPT
Michael Jackson - Billie Jean Milena The Voice France 2018
'Godfather Of AI' Geoffrey Hinton Quits Google To Warn Of The Tech's Dangers
Michael Buble (Help Me Make It Through The Night) feat Loren Allred
Memories Canon In D - Maroon 5 (Boyce Avenue piano acoustic cover)
Matteo Simoni - Marina
Maroon 5 - One More Night
Maroon 5 - Memories
Mark Knopfler - Brothers In Arms (Berlin 2007 Live)
Mark Knopfler & Emmylou Harris - Romeo And Juliet (Real Live Roadrunni
Marina, Marina - The LUCKY DUCKIES intimist live concert at Guimarães
Major Lazer & DJ Snake – Lean On Mauranne The Voice France 2016
Love Theme from Romeo and Juliet - Joslin - Henri Mancini, Nino Rota
LoLa & Hauser - Love Story
Linkin Park Jay-Z - Numb Encore (Live 8 2005)
Hallelujah Mennel Ibtissem, The Voice France Leonard Cohen
Leonard Cohen - Dance Me to the End of Love
Leonard Cohen & Natasha Rostova - Dance me to the end of love
La casa de papel - Bella Ciao
La Camisa Negra
L'italiano (Toto Cutugno) - The Gypsy Queens
Juanes - La Camisa Negra
Jonathan and Charlotte - Britain's Got Talent 2012 Live Semi Final - U
John Powell - Assassin's Tango
Joe Cocker - You Can Leave Your Hat On (LIVE in Dortmund)
Joe Cocker - Unchain My Heart 2002 Live
Joe Cocker - A Whiter Shade Of Pale
Jay Z & Alicia Keys - Empire State of Mind LIVE
Jason Mraz - Im Yours (live)
Jarrod Radnich - Bohemian Rhapsody - Virtuosic Piano Solo
James Blunt - You're Beautiful
James Blunt - You're Beautiful & Bonfire Heart (Live at The Nobel Peac)
If You Go Away - Helen Merrill & Stan Getz (Tribute to Virna Lisi)
I'LL BE MISSING YOU
I Say a Little Prayer
Hotel California ( Eagles ) 1994 Live
Historia de un amor - Luz Casal. Vezi interpretarea Biancăi Sumanariu
Here Comes The Sun - The Beatles (Boyce Avenue acoustic cover) on Spot
Heart - Stairway to Heaven Led Zeppelin - Kennedy Center Honors
HAVANA by Camila Cabello Zumba Pre Cooldown TML Crew Kramer Pastra
HAUSER and Señorita - I Will Always Love You
HAUSER - Waka Waka
HAUSER - Sway
HAUSER - Lambada
HAUSER - Historia de un Amor
HAUSER - Despacito
Great Pretender
Georgia May Foote & Giovanni Pernice Samba to 'Volare' - Strictly Come
Gary Moore - Still Got The Blues
GIPSY KINGS VOLARE Penelope Cruz
Fugees - Killing Me Softly With His Song
French Latino - Historia de un Amor
For A Few Dollars More The Danish National Symphony Orchestra (Live)
Flashdance • What a Feeling • Irene Cara
Filip Rudan - “Someone You Loved” Audicija 4 The Voice Hrvatska Sez
Eric Clapton - Wonderful Tonight
Enya - Only Time
Enrique Iglesias - Bailando (English Version) ft. Sean Paul
Enrique Iglesias - Bailamos
Elena Yerevan Historia de un amor
Ed Sheeran - Shape of You (Official Music Video)
Ed Sheeran - Perfect Symphony [with Andrea Bocelli]
Ed Sheeran - Perfect (Official Music Video)
Easy On Me - Adele (Boyce Avenue 90’s style piano acoustic cover) on S
ERA - Ameno
ELENA YEREVAN- Cancion Del Mariachi-IN STUDIO-2017 DPR
Dust In The Wind - Kansas (Boyce Avenue acoustic cover)
Don't Let Me Be Misunderstood
Despacito x Shape Of You - Pentatonix
Deep Purple - Child In Time - Live (1970)
David Foster When A Man Loves A WomanIt's A Mans World (SealMichael Bo
Dance me to the end of Love ( Pi-Air Design )
Coolio - Gangsta's Paradise (feat. L.V.) [Official Music Video]
Conquest Of Paradise (Vangelis), played on Böhm Emporio organ
Cielito Lindo
Chico & The Gypsies - Bamboleo
Canción Del Mariachi - Antonio Banderas, Los Lobos • Desperado
Camila Cabello - Havana (Audio) ft. Young Thug
Camila Cabello - Havana ( cover by J.Fla )
California Dreamin' - The Mamas & The Papas José Feliciano (Boyce Ave
Buster Benton - Money Is The Name of The Game
Hallelujah Pentatonix
Bobby McFerrin - Don't Worry Be Happy (Official Music Video)
Bob Dylan - Knockin' On Heaven's Door Emilia The Voice Kids France
Besame Mucho - Cesaria Evora
Ben E. King - Stand by Me Sax Cover Alexandra Ilieva Thomann
Bella Ciao
Bella Ciao - INSTRUMENTAL
Beautiful in White x Canon in D (Piano Cover by Riyandi Kusuma)
Bad Romance - Vintage 1920's Gatsby Style Lady Gaga Cover ft. Ariana Savalas & Sarah Reich(1)
BELLA CIAO 2020 - KARAOKE ITALIANO
BAMBOLEO - Gipsy Kings • Antonio Banderas, Katya Virshilas
BAILANDO (original)
Awesome Ukrainian yodeler - SOFIA SHKIDCHENKO (with English subtitles)
Avicii - The Nights
Atom - The Great Gig in the Sky
Aretha Franklin - (You Make Me Feel Like) A Natural Woman (Official Ly
Antonio Banderas - Cancion del Mariachi (Desperado)
André Rieu - Zorba's Dance (Sirtaki)
André Rieu - Can't Help Falling In Love
André Rieu & Mirusia - Ave Maria
Andrew Reyes Elton John - Don't Let The Sun Go Down The Voice 2020 (
Andreas Kümmert Whiter Shade Of Pale The Voice of Germany 2013 Showd
And I Love You So
All About That Bass - Postmodern Jukebox European Tour Version
Alan Walker - Faded (Piano Cover)
Ain't No Sunshine -- Bill Withers (cover by Canen 12 y.o.)
African music
Adriana Vidović - “Creep” Audicija 4 The Voice Hrvatska Sezona 3
Adriana Vidović - “Believer” Nokaut 3 The Voice Hrvatska Sezona 3
A Fistful of Dollars - The Danish National Symphony Orchestra and Tuva
4 Beautiful Soundtracks Relaxing Piano [10min]
2CELLOS - Whole Lotta Love vs. Beethoven 5th Symphony [OFFICIAL VIDEO]
2CELLOS - Smooth Criminal (Live at Suntory Hall, Tokyo)
2CELLOS - Smells Like Teen Spirit [Live at Sydney Opera House]
2CELLOS - Despacito [OFFICIAL VIDEO]
13 Year Old Girl Playing Il Silenzio (The Silence) - André Rieu
094.All About That Bass
00 - SADNESS PART 1
(Ghost) Riders In the Sky (American Outlaws Live at Nassau Coliseum, 1
(Everything I Do) I Do It For You - Bryan Adams (Boyce Avenue ft. Conn
What a wonderful world
Moon river
×