AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- After more than a year of sharp increase, the British Retail Consortium (BRC) indicated that annual food inflation had come down 15.4%.
- Previously, it was hovering around 15.7%.
- The BRC, which constitutes the set of UK retailers, feels that the recent easing is largely on the back of low energy and commodity costs.
After suffering from months of high food inflation Britain’s foodflation seems to show signs of easing. Reports suggest that the grocery price index for the current month may have peaked following an increased CPI rate.
After more than a year of sharp increase, the British Retail Consortium (BRC) indicated that annual food inflation had come down 15.4%. Previously, it was hovering around 15.7% even as the overall rise in real estate prices continues to create headaches for retailers.
Courtesy of the fall, the fresh food inflation too took a dip to 17.2%, with the prices of daily essentials such as milk, cheese and eggs all coming down. The BRC said the fresh fall indicates the easing of the food-price inflation.
The BRC, which constitutes the set of UK retailers, feels that the recent easing is largely on the back of low energy and commodity costs. However, the retailer’s body warned the government that if it doesn’t keep a check on the country’s dependence on food imports, it may again fall into the inflation trap.
The Bank of England has already indicated that the inflationary pressure may result in another interest rate hike. It is anticipated that the BoE may raise the interest rates from 4.5% to 4.75% when its monetary policy committee meets on 22 June.
Ocado Group Plc (LON:OCDO)
Ocado Group is one of the country’s top online end-to-end grocery firms, which offers daily products, food and drinks, toiletries etc. The Ocado Group, on 30 May, was witnessing a blip of -2.04% and was trading at GBX 398.70 at the time of writing. With a market cap of £3,364.12 million, this FTSE-100 constituent has given its shareholders negative annual returns of -55.76% and -35.34% on a YTD basis.
Associated British Foods Plc (LON: ABF)
Associated British Foods is primarily a diversified international food, ingredients and retail firm with a market cap of £14,448.43 million. The ABF stock over the past year has given its shareholders returns of 6.51% and 17.32% on a YTD basis. ABF stock on 30 May was witnessing another downtrend as it was down by -0.65% and was trading at GBX 1849.00.
