Inflation raises UK food costs by £ 380 this year, data

Inflation surges are expected to boost UK grocery bills by £ 380 this year, according to new consumer data, as the Bank of England’s chief economist argued that higher interest rates were needed to curb price increases. Will be.

Research firm Kantar predicted in April that average annual supermarket costs would rise by £ 270 this year, but rose by more than £ 100 on Tuesday as price pressures throughout the supply chain continued.

The data says, “The recent sharp rise in prices and inflation [food retail] “Sector,” said Fraser McKebit, Head of Retail and Consumer Insights at Canter.

According to official data, consumer price inflation rose in April at 9%, the highest in 40 years. Bank of England We predict that it could rise by 11% in the fall.

The numbers are from Hupil, Chief Economist of the Bank of England. Interest rates go up further In the UK, even if the increase increases the risk of a recession.

Pill told an online audience on Tuesday that the BoE’s efforts to mitigate inflation will reduce inflation, but will not be able to fine-tune the business cycle or deal with inequality. Said used.

Pill admitted that inflation has taken on “self-sustaining momentum.” This could allow the BoE to act more aggressively and curb inflation at higher interest rates.

Inflation is caused by energy prices, but rising costs are spreading to many economic sectors as companies pass on increasingly higher costs to consumers.

Official data on food and beverage prices rose at an annual rate of 6.7% in April, the fastest in more than a decade. Kantar’s data show that food prices continue to skyrocket.

According to the data, food inflation reached 8.3% annually in the four weeks leading up to June 12, rising 1.3 points from the previous month to the highest level since April 2009.

Shoppers are responding to rising living costs by exchanging branded goods for cheaper supermarket home-branded products, Canter said. Sales of the former decreased by 1.0% annually in the 12 weeks leading up to June 12, but sales of own-brand products increased by 2.9%.

“We also see that consumers are looking to ranges of values ​​such as Asda Smart Price, Co-op Honest Value and Sainsbury’s Imperfectly Tasty to save money,” McKevitt added.

Financial markets expect interest rates to rise to 3% over the next year as central banks are trying to curb inflation, which they expect to rise above 11% in the second half of this year.

At the same time, the outlook for UK economic growth is deteriorating as higher price increases are expected to hurt consumption.

Some of the BoE’s Monetary Policy Committee do not believe that further tightening is needed to curb inflation, but Pill favored more hawkish members.

“We will do what we need to do to bring inflation back to our target, and at least in my view, this will require further tightening of monetary policy in the coming months,” Pill said.

Inflation raises UK food costs by £ 380 this year, data

Source link Inflation raises UK food costs by £ 380 this year, data

Related Articles

Back to top button