Supermarket rivalry hits food inflation
Food deflation “deepened further” in July, due to intense competition, according to the British Retail Consortium (BRC).
The BRC recorded a rate of 0.6% food inflation for the month of July. This follows the lowest-ever rate of food inflation recorded by the BRC in June at 0.6%. Helen Dickinson, British Retail Consortium director general, explained: “Shop price deflation deepened still further in July and marked 15 consecutive month of falling shop prices for consumers.”
Dickinson said low food inflation was a result of “fierce competition” between retailers, which has seen prices of everyday meat products slashed in what has been named a ‘supermarket price war’, sparked by poor performances from the Big 4 supermarkets.
Consumers are set to benefit from low prices throughout summer, according to Mike Watkins, head of retailer and business insight, Nielsen, who said: “There is very little food inflation at the moment and this looks set to continue over the summer. Many supermarkets are reducing prices across ambient and seasonal fresh foods, which is helping shoppers make further savings on household bills.”
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- British Retail Consortium
- food inflation
- british retail
- retail consortium
- supermarkets consumers
- poor performances
- price war’ sparked
- everyday meat products
- ‘supermarket price war’
- meat products slashed