Flood effects not yet seen on food prices
The impact of the recent floods has not yet made it through to food prices, according to the latest British Retail Consortium (BRC)-Nielsen Shop Price Index (SPI).
The SPI for July shows that overall shop prices were 0.6% higher than a year ago, with food prices being the main reason for the slight price inflation. Food inflation has fallen to 2.8% from 3.6% in June and 3.8% in May.
However, food prices are expected to increase later this year because of the floods which have damaged or prevented the harvest of cereal and vegetable crops in many of the main growing areas.
