October Food Inflation Rises to 14.7 Percent in U.K.


Although the U.S. recorded an 8 percent increase in food prices during the month of October, British consumers are faced with relatively higher costs.  Market research company, Kantar, has calculated that inflation rose to 14.7 percent in October, with food such as milk, pet food and proteins showing the greatest increases.  Failure to curb inflation cost Prime Minister Liz Truss her job amid concern over the state of the economy. It is estimated that a quarter of U.K. households are under extreme financial stress.  The situation will be exacerbated through the winter with a reduction in availability of gas from Russia for home heating.


Predictable results of food price inflation include demand for lower-priced house brands.  Sales in this category increased 10 percent during September compared to branded goods that rose 0.4 percent.  Deep discounters ALDI and Lidl recorded sales increases during October of 23 percent and 22 percent, respectively, compared to conventional supermarkets that recorded lower sales.