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Tracker: Food Price Inflation Weakens
Posted: May 11, 2009
Food prices fell 1.2% from March to April 2009, and were up just 7.6% on the previous year, according to a recent data from Verdict Research Consulting (London).
According to the monthly food price analysis, rising costs of raw materials and high oil prices, coupled with recession and rising unemployment, revealed that almost 15% more food shoppers (than a year ago) select their grocery store based on price; many are also prepared to travel to less convenient locations to save money on their shop. According to consulting director Neil Saunders, “For the past year, food prices have weighed heavy on consumer mind and wallet. With the recession starting to bite and unemployment rising rapidly, a slowing of inflation could not have come at a better time.”
Though the company believes that this trend will continue into 2009 and prices will ease significantly before the end of the year, Retail consultant Paul Bashford notes, “The truth is that most consumers will still be paying quite a bit more for their food than they did some years ago; the good news is that by December we believe they’ll be paying less than they did in January.”