Grocer profit will be sacrificed on UK food altar

LONDON, Oct 3 - British shoppers enjoyed a novel experience last month: lower food prices. Admittedly, the fall in the average food basket between August and September was just 0.1%, according to the British Retail Consortium. But it was the first monthly fall in food prices since July 2021 and brought down overall retail inflation to 6.2%, the lowest in a year.

That’s good for consumers, especially those who like dairy products, margarine, fish and vegetables – the items that caused the overall fall. It also vindicates last month’s decision by the Bank of England to hold interest rates at 5.25% after 14 consecutive hikes, especially if the official inflation figures due out next week mirror the BRC’s findings.

Grocers have less to celebrate. Helen Dickinson, the BRC’s CEO, said that “fierce competition” drove prices down. Retailers are already feeling the pinch – J Sainsbury’s EBITDA margin is expected to fall to 6.7% in its current financial year, down from 6.9% in the 12 months ending March 2023, according to LSEG forecasts. A price war to win over stretched shoppers is the last thing they need.

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stock market today: Most of Wall Street slips as the bond market cranks up the pressureMost stocks are drifting lower Monday as the constrictor of higher interest rates tightens its coils around Wall Street.
Source: CTVNews - 🏆 1. / 99 Read more »

In the Market: US bond market signals the end of an eraThe U.S. bond market is calling a moment: the age of low interest rates and inflation that began with the 2008 financial crisis has ended. The market's view has come into sharp focus in recent days amid a dramatic run-up in 10-year Treasury yields that hit 16-year highs. Behind that move is a bet that the disinflationary forces the Federal Reserve fought with its easy money policies in the aftermath of the financial crisis have abated, according to investors and a regularly updated New York Fed model based on yields.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

In the Market: US bond market signals the end of an eraBy Paritosh Bansal (Reuters) - The U.S. bond market is calling a moment: the age of low interest rates and inflation that began with the 2008 financial ...
Source: SaltWire Network - 🏆 45. / 63 Read more »

US futures steady after lawmakers avert shutdown: Stock market news todayStocks lost hold of earlier premarket gains as investors weighed what the deal to avert shutdown means.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Prairie Grid Dinner & Market event | Watch News Videos OnlineWatch Prairie Grid Dinner & Market event Video Online, on GlobalNews.ca
Source: GlobalCalgary - 🏆 50. / 61 Read more »