• Welcome to DOSBODS

     

    DOSBODS is free of any advertising.

    Ads are annoying, and - increasingly - advertising companies limit free speech online. DOSBODS Forums are completely free to use. Please create a free account to be able to access all the features of the DOSBODS community. It only takes 20 seconds!

     

Sign in to follow this  
sancho panza

Shop price inflation hits 6-year high

Recommended Posts

Not sure of the significance or whther it's a vested interest trying to scare the govt into getting an EU deal.

https://www.retailgazette.co.uk/blog/2019/02/shop-price-inflation-rises-to-6-year-high-in-february/

Shop price inflation has reached its highest levels in six years due to unsustainable pressure on the supply chain from the plunging pound and rising fuel prices, according to new data.

The latest BRC-Neilsen Shop Price Index shows that shop price inflation accelerated in February to 0.7 per cent, up from 0.4 per cent in January and the highest inflation rate since March 2013.

The BRC said the key driver of the upward movement in the year-on-year shop price inflation in February was the non-food category, while food price inflation overall was stable.

Non-food prices rose by 0.2 per cent year-on-year in February compared to the January decrease of 0.2 per cent, marking the first time that the non-food category has been inflationary since March 2013.

February usually sees non-food retailers introducing new products at full price after a January of clearing stock and discounting, and the BRC said it was “no surprise” that non-food prices are higher month-on-month.

However, the fact it was higher on a year-on-year basis reflected significant cost pressures which have built up in the supply chain over the last two years, notably from the currency depreciation in 2016 and the rise in oil prices last year.

Despite this, the BRC highlighted that non-food prices remained below levels seen in 2016.

Meanwhile, food inflation inched up slightly in February to 1.6 per cent, up from 1.5 per cent in January.

Fresh food inflation accelerated to 1.7 per cent in February, up from 1.2 per cent in January, while ambient food inflation eased in February to 1.5 per cent compared to 1.9 per cent in January.

“For the first time in almost six years the price of non-food goods rose, albeit slowly, as cost pressures which had been building in the supply chain over the past few years fed through into prices,” BRC chief executive Helen Dickinson said.

“This adds to gradual ongoing rises in food prices, resulting in the highest overall shop price inflation since March 2013.'

 

 

 

Share this post


Link to post
Share on other sites

It must be hurting the retailers for sure, or at least in margin terms the direction is looking down.  A storm of the pound (rolled out of old contracts and hedges), less disposable incomes, increased production costs (run out of cheap places to manufacture), consumer credit levels, end of shrink/design inflation, maybe some SOL reserve tapping, local and central government crowding out of incomes, etc.  Depends on demand elasticity as to whether they can raise prices which is bad for the more discretionary ones.  But wages are apparently now going up in real terms after a 10 year long collapse.  Sure!

Share this post


Link to post
Share on other sites

I like the Co-op's own-brand Californian red wine. Was always 4.99 a bottle but went in one day end of last year and it had gone up to 5.25. Grudgingly bought it anyway and bizarrely they soon has a "promotion" selling it at 5.00 quid again but that eventually ended. 

Last night went to buy a bottle and it's now 5.49 the bastards. My salary has not gone up 10% this year so I just thought fuck them and walked out of the shop again. Lidl do a reasonable wine box which works out at 3.50 a bottle, not quite as nice but OK and better value. Don't retailers understand that people don't like having the piss taken?

Share this post


Link to post
Share on other sites
3 hours ago, Funn3r said:

. Lidl do a reasonable wine box which works out at 3.50 a bottle, not quite as nice but OK and better value. Don't retailers understand that people don't like having the piss taken?

Try their reserva rioja "Cepa lebrel reserva 2012". Very good for the price but do serve it warm and give it time to breathe: makes all the difference

Share this post


Link to post
Share on other sites
1 hour ago, InLikeFlynn said:

Try their reserva rioja "Cepa lebrel reserva 2012". Very good for the price but do serve it warm and give it time to breathe: makes all the difference

Ffs I don’t treat women that well never mind alcohol I like mine cold by the way

Share this post


Link to post
Share on other sites

IMO retailers will get the message sooner or later that raising prices will not address their woes about maintaining or increasing profits. They’re on a loser due to the ongoing decline in living standards in the uk. I can’t imagine anything in the foreseeable future that will encourage enough people to keep on paying more for stuff because for the majority incomes have stagnated.

Many people will do the usual thing, in my living memory, and look for alternatives to reduce spending plus make a choice to stop buying certain products because they’re deemed to be too expensive.

Share this post


Link to post
Share on other sites
4 minutes ago, Van Lady said:

IMO retailers will get the message sooner or later that raising prices will not address their woes about maintaining or increasing profits. They’re on a loser due to the ongoing decline in living standards in the uk. I can’t imagine anything in the foreseeable future that will encourage enough people to keep on paying more for stuff because for the majority incomes have stagnated.

Many people will do the usual thing, in my living memory, and look for alternatives to reduce spending plus make a choice to stop buying certain products because they’re deemed to be too expensive.

It's not the retailers it's the suppliers! Fucking bastards!

They have a price list for the year and have calculated that the £ will be worth 75% of what it is now. So the prices have gone fucking mental.

 

Share this post


Link to post
Share on other sites
16 minutes ago, stokiescum said:

Tempriment lol it’s better forced 

I never got to find out, there was a girl at college with a particularly sour demeanour but strangely massively attractive.

Share this post


Link to post
Share on other sites
Just now, XswampyX said:

It's not the retailers it's the suppliers! Fucking bastards!

They have a price list for the year and have calculated that the £ will be worth 75% of what it is now. So the prices have gone fucking mental.

 

Still, I think retailers are misinformed if they think that consumers will not cut back when faced with ever rising retail prices.

Share this post


Link to post
Share on other sites
3 minutes ago, onlyme said:

I never got to find out, there was a girl at college with a particularly sour demeanour but strangely massively attractive.

exactly,

2 minutes ago, Van Lady said:

Still, I think retailers are misinformed if they think that consumers will not cut back when faced with ever rising retail prices.

whilst they can get easy credit they might not.its because they are worth it.

Share this post


Link to post
Share on other sites

Back on topic, sorry for the divergence.

Food prices could be the thing that busts the markets and finally releases the inflation that has magically disappeared for decades despite massive QE. Cheap suppliers globally would be the ones that would not be able to keep the lid on upward wage pressure.

Share this post


Link to post
Share on other sites
9 minutes ago, XswampyX said:

It's not the retailers it's the suppliers! Fucking bastards!

They have a price list for the year and have calculated that the £ will be worth 75% of what it is now. So the prices have gone fucking mental.

 

to be fair even i was surprised by how much soup has gone up by.today its 6 tins of heinz for 4 quid in morrisons and slightly cheaper in tesco.i only went there has they have lots of dead fish and my 4 year old loves looking at them.its cheaper than going the zoo.

Share this post


Link to post
Share on other sites
1 minute ago, Van Lady said:

Still, I think retailers are misinformed if they think that consumers will not cut back when faced with ever rising retail prices.

You think retailers that employ people to sell stuff... don't want to sell stuff.

Retailers are at the coal face of customer rejection. Suppliers don't care what you think.

 

Share this post


Link to post
Share on other sites
1 minute ago, stokiescum said:

to be fair even i was surprised by how much soup has gone up by.today its 6 tins of heinz for 4 quid in morrisons and slightly cheaper in tesco.i only went there has they have lots of dead fish and my 4 year old loves looking at them.its cheaper than going the zoo.

What's the difference between the fish in morrisons and the fish in an aquarium?

The fish in morrisons still have their eyes. ;)

Share this post


Link to post
Share on other sites
7 minutes ago, XswampyX said:

What's the difference between the fish in morrisons and the fish in an aquarium?

The fish in morrisons still have their eyes. ;)

yes and they look very chilled

Share this post


Link to post
Share on other sites
11 minutes ago, XswampyX said:

You think retailers that employ people to sell stuff... don't want to sell stuff.

Retailers are at the coal face of customer rejection. Suppliers don't care what you think.

 

ive still got beans in my house i paid 15p for it looks like it was a good investment,ive got tinned potatoes i paid 6p for im not sure what they are now.

Share this post


Link to post
Share on other sites
13 minutes ago, Agent ZigZag said:

Food is still very cheap. THERE IS A LONG WAY TO GO BEFORE IT HURTS THE POCKETS OF OF THE MASSES

Yes it is, but there's a hell of a population reliant on it and we are reliant on very cheap wages around the world to feed low cost manufactured goods into the system.

Share this post


Link to post
Share on other sites
Posted (edited)
59 minutes ago, Agent ZigZag said:

All very true, of what could happen. Important to hold some reserves ready to trade when such an event turns, but at the moment still cheap food

Could be something that will completely blindside conventional economics / and the rest. A  russian scientist reckons we're heading for a grand solar minimum, ok quite likely on the cranky end of things but such and event would no doubt have widespread and uncontrollable (via conventional/unconventional) economics to do anything about it. So would anything else that would disrupt the climate in short shrift - global warming I think we could adapt on multi decade timescales quite easily.

Edit - at the moment grain stocks seemed to have peaked the last few years, rice still increasing yields.

Edited by onlyme

Share this post


Link to post
Share on other sites
15 hours ago, Agent ZigZag said:

Food is still very cheap. THERE IS A LONG WAY TO GO BEFORE IT HURTS THE POCKETS OF OF THE MASSES

There isn't.

I knew people 4 years ago that were putting essentials on credit whilst working a higher than medium income full time job.

It's hurting already. I feel it and I have £zero debt to service.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.