For the first time since 2017, food prices have begun to fall, but analysts are already warning that some of the rising costs will have to be passed on to shoppers.
The supermarket shop is one of the biggest expenses most of us have to cover every month.
After all, you can’t really meet the need for food in such a way that you can cut down on major expenses from your regular expenses.
Fortunately, new reports suggest that our trips to the supermarket aisles are also a little cheaper, although there are big questions about how long it can continue.
Falling food prices
The British Retail Federation and Nielsen keep track of the prices we pay for various items in stores.
As for food, prices have fallen for the first time in years.
Both companies reported that food prices fell 0.6% in April, up 0.3% from the previous month.
Incredibly, this is the first time companies have measured a drop in food prices since January 2017 – four years ago.
Fresh food, in particular, became cheaper, with prices falling to 1.5% from a 0.8% drop in March, while environmental food inflation fell to 0.6% a month – the lowest level since March 2018.
Get more bread for your dough
These data are also supported by the Office for National Statistics (ONS) inflation figures.
In the recent breakdown of the consumer price index, one of the biggest downward pressures on inflation was the price of food and non-alcoholic beverages, which fell for the fifth consecutive month to 1.4% in the first year.
The last time food prices were low, according to the ONS, was in November 2016, when the biggest drop in prices was in bread, cereals and candy.
Why prices are falling
There are some different factors in the fall in food prices.
The PRC pointed out that a year ago supermarkets were running very cheap ads because the first lock was pushed into gear and pushed people to stockpile.
But there is also competition. There is no denying that the food market today is much more competitive than it was a few years ago, as Aldi and Little’s deep discounts have generated a huge following.
Large supermarkets have seen their market share eroded because shoppers have realized that they can pay significantly less for their food without sacrificing quality.
Those savings are really substantial.
Where are the consumer champions? Howis recently released a breakdown of the average price you have to pay for a trolley of 45 items – including bread, stock cubes, cucumber and tomato – among the top eight names throughout 2020.
Little and Aldi are the cheapest, respectively. You would not be surprised to hear that 42.67 and .0 charge 43.01.
Surprisingly, it’s much cheaper than their competitors – less than $ 10 for the likes of Tesco and Sainsbury & # x20AC; & # x2122; For more than a year, those savings add up to some serious money.
Because of this increased competition, we have seen supermarkets change how they operate to try to compete with deeper discounters.
With Asta, it was a pledge to reclaim their product limits so that they could charge a lower fee, while Tesco and Sainsbury’s have every introduced price competition plan with Aldi.
What happens next to food prices?
The big question is whether we can expect food items to continue to fall.
PRC is not sure.
Helen Dickinson, chief executive of PRC, warned that retailers will face some serious price challenges in the coming months as additional red tape increases shipping costs from Brexit and food and oil prices.
As a result, he argues, these stores have no choice but to hand over some of these costs to ordinary shoppers.
Time will tell only if it actually happens, especially when supermarkets know that a numerous shoppers will have to do small jobs, due to the current job turmoil.
But this is an important reminder of the need to keep an eye on how the price we pay may change, and be open to the idea of transforming supermarkets in the hunt for the best value for money.
Of course, keep an eye on us Weekly roundup of the best supermarket deals and discounts.