Has food price inflation finally peaked? Figures released by the British Retail Consortium (BRC) this morning reveal that food prices were up 15.4 per cent in the past 12 months, down from 15.7 per cent in the year to April. Last week’s figures from the Office of National Statistics also showed a small fall, from 19.2 per cent in March to 19.1 per cent to April. The BRC’s methodology is different from the ONS’s, not only in that it tends to produce slightly lower figures but that it also runs slightly ahead.
The inflation story has subtly changed, from being one led by energy prices to being dominated by food prices
Over the past few months, the inflation story has subtly changed, from being one led by energy prices to being dominated by food prices. Energy prices have slumped since hitting a peak in August last year. Given that energy is an important input price in food production, this alone should help to feed through to food prices.
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