Level 324 words of wonder7/1/2023 ![]() Second, why aren't major retailers discussing this, and the implication that it will have on their own price structures over coming months? Why is that possibility not being discussed? If food prices are supposedly now driving inflation, then it is entirely reasonable to expect that inflation will fall significantly and soon precisely because of the decline in bulk food prices. The first is that the Bank of England takes this fact into account when appraising inflation expectations. However, just as world oil and gas prices have now fallen significantly, so have food prices, and it is therefore entirely reasonable to expect three things. In other words, many of the raw materials that they are using at present were bought at higher prices set sometime in the last year. I am, of course, aware that food manufacturers buy forward. ![]() The average fall in prices exceeds 20%.ĭespite this, what we have learned today is that food prices in the UK are up 19% in a year, with bread, olive oil and milk being central to this, even though all of them have seen their bulk wholesale prices fall dramatically. It is that some absolutely basic food prices are down heavily on international markets over the last year. There is one absolutely consistent feature to be noted within that table. I stress that I do know that we use little US wheat, but wheat is traded globally, as are many of the commodities noted in the table at the bottom. I had a quick check of some key food prices on international markets as a result of comments left on this blog with regard to inflation this morning. ![]()
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