Food deflation deepens
Food deflation has deepened to 3% year-on-year, according to data released by the Office for National Statistics (ONS) for October 2015.
The report claimed that the sector was down 50 basis points (bps). A bps, which equates to one hundredth of one percentage point, is used to express the differences in interest rates.
Meat/oil and fat saw one of the biggest contractions down 4.3% year-on-year (yoy), while fish experienced the largest reduction at 6.4%.
ONS highlighted that the supermarkets had experienced a difficult three months: “The monthly market share data for the British grocery trade from Nielsen records an industry where revenue weakness overall remains the order of the day. For the 12 weeks to 7 November 2015, Nielsen recorded that sales values in the till fell by 1.2% yoy with volumes falling by 0.5%. As such the market, impeded in top-line terms by deflation, is weak, with the last quarter being especially so.”
Despite this, the discounters are performing well. Kantar Worldpanel recently revealed that Aldi and Lidl have a combined share of the grocery market of 10% for the first time.
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