Archive: Retail competition keeps food inflation down

Published 10 September 14

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Food inflation has fallen as competition between retailers has driven down the price of staple items. According to the Office for National Statistics (ONS), price inflation for milk is now negative at -1.7%, having fallen sharply since the introduction of a string of retail price cuts for milk in March. The majority of retailers now sell milk at £1 for four pints, with a current average price of £1.14, according to ESA Retail.

In contrast, butter has seen consistent price inflation, with the July figure at 7.2%. Aside from fresh fish, this is the highest rate of inflation of all food products. As a whole, UK food inflation eased to -0.1% in July, down from 3.8% a year ago. This negative inflation figure is currently restraining overall growth of the market, and is particularly prominent in the liquid milk sector.