Retail Price War Threatens Producer's Margins

August 2008 | Industry News

The UK's level of Consumer Price Inflation (the government's target measure) hit 4.4% in July after rising steadily for the past six months (see graph). The rising price of food and drink was responsible for a substantial proportion of this increase with the UK's National Statistics Office reporting that inflation on food and non-alcoholic beverages hit 12% in July. The rising price of food and drink, along with slowing economic growth, has increased consumer price sensitivity and sparked a massive price war among the UK's leading retailers.

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