Food inflation will soon be back on the menu

The recent marked easing in food price inflation won’t last long as it’s only a matter of time before the rise in global agricultural commodity prices feeds into the prices on the supermarket shelves. We think that food price inflation will rise from 1.3% in July to a peak of around 5.0% this time next year. That said, we previously thought food price inflation would rise to 6.0%. And it’s possible that weak consumer confidence and strong supermarket competition will prevent it rising all the way to 5.0%.

We’ll be discussing the state of the UK economy, our latest analysis on the Autumn Budget and what to expect from the Bank of England’s September meeting in a 20-minute online briefing at 2pm BST on Wednesday 9^th September. (Register here.)