Food inflation ‘beginning to ease’

19 September 2008

There are signs that the rise in food costs over the past year may be about to hit its peak before settling, according to experts.

Analysts from Deutsche Bank have predicted that average underlying sales growth at the top four UK supermarket groups would slow to 2.6 percent next year from 4.2 percent in 2008 and 4.1 percent in 2007.

Food prices have been a major factor in the recent 16-year high inflation rates putting pressure on the economy. While the official inflation rate has just reached 4.7%, various experts have estimated food price growth to be closer to 10%.

A spokesperson for Think Money said: “This is good news for the large numbers of people who have been put at risk of debt from rising food costs.

“Food prices are unlikely to actually come down, but once they become more stable, it will at least enable more people to start planning for the future again.”

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