No-deal Brexit perspective makes a comeback
Food inflation in British retail is still above the 12-month average and it will stay like this, according to BRC Chief Executive Helen Dickinson. "A no-deal Brexit in October would present the worst of all worlds for our high streets and those who shop there. Retailers will be preparing for Christmas, stretching already limited warehousing capacity, and the UK will be importing the majority of its fresh food from the EU, magnifying the impact of border delays", she declared in an interview for Food Ingredients First magazine.
The latest BRC-Nielsen Shop Price Index shows a mixed picture in the food sector for May. Food inflation continued to decelerate in May to 1.8% from 2.2% in April. This is above the 12-month average price increase of 1.7%, but below the six-month average price increase of 1.9%.
Fresh Food inflation was steady at 1.5% in May. This is above the 12- and six-month average price increases of 1.3% and 1.4%, respectively.
Meat prices fell in May, in line with past global developments which are now feeding through into final consumer prices. "Unless the Government addresses future cost rises, including spiraling business rates, we may see larger price rises in the future", believes Mrs Dickinson. At the end of May, prime-minister Theresa May announced her resignation, increasing the uncertainty regarding the path that the political spectrum must take to find the best way for exiting the EU.
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