I wrote a blog post in March this year “Food price inflation gathers pace” which used inflation data up to February. I concluded that post by noting that “the explanation for the continuing rise in food price inflation is mostly likely down to the lags in transmitting price changes through the food price chain. Food price increases in the past year, though very high, have not fully reflected the increases in prices at primary producer level. As food manufacturers and retailers continue to adjust their prices to these higher input costs, food price inflation is likely to continue at a high level”.
In this post, I bring the story up to date using information up to June 2023. My prediction in March 2023 seems borne out by the data. Food price inflation remains very high but there is evidence that food prices at EU level have stabilised and that we can expect some modest decrease in the coming months.… Read the rest
