What’s behind 2017’s turnaround in food prices?
Thursday, 30 November 2017
In the midst of the recession that followed the 2008 banking crisis, many shoppers welcomed the disrupting influence of Hard Discounter supermarkets. The price-cutting response of established big retailers was also well-received, fierce competition for market share led to a period of declining grocery prices stretching back to September 2014, according to Kantar Worldpanel. But in January this year, prices began to grow and like-for-like grocery price inflation now stands at 3.2 per cent (Kantar Worldpanel, 12 w/e 5 November 2017).
Market changes
Rising prices are not solely due to currency changes. AHDB Consumer Insight articles show that there is a new emphasis on creating a premium product and image, with a higher price, in the fast-growing frozen food category. AHDB also describe how the dairy sector has been hit by falling production, a shortage of fats and rising demand connected to changing consumer attitudes.