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.

Want more stories like this in your inbox?

Sign up for our FREE email newsletter


My Account


Most read


Following the Prime Minister's speech on Brexit, are you more or less confident about leaving the EU?