Food price inflation

[milkloss]

I have read a couple of articles lately.... can't remember where now.... regarding food price inflation. Last time it was getting this heady we had the Arab Spring.

Anyone else watching this sort of thing?

 

[Macsky]

Don’t need to read any articles on it, I’m hearing it from the wife on a weekly basis!

 

[Yale]

Oil will be going one way,that will drag other commodities with it.

 

[serf]

The masses will have to cut back on the NON essentials then , flash fone flash car flash holiday flash TV contract ect , or fookin starve ,
no reason to riot till they get priorities in order !

 

[teslacoils]

After their above inflation pay rises, they can all afford it.

 

[GeorgeK]

There will be even longer queues of morbidly obese folk at food banks, news cameras documenting their daily struggle to maintain a BMI of 40 or above

 

[Frank-the-Wool]

Food price is rising, but other commodities are being held at bay by the stronger pound.
Much of the food inflation is from the Brexit effect of higher costs, hopefully with the stronger pound this may be short lived.

However the government won't be too concerned about a bit of inflation as it helps to remove debt.

 

[Hindsight]

I buy Morrisons Savers Porage Oats. Always located on the bottom shelf of the display stand with Scotts Highlander Pretty Packaging at convenient eye level. You have to get down on ones knees to extract the Savers packet from the shelving. A necessity for a cheapskate like me. For several years a 1 kg pack has been 75pence. A couple of weeks ago shock occured the price ha gone up to 81pence and the packaging 'prettified'. For me that is the benchmark to demonstrate food price inflation is real. I blame the farmers myself (!!) The Scotts by the way are about two half times the price.

 

[goodevans]

I buy Morrisons Savers Porage Oats. Always located on the bottom shelf of the display stand with Scotts Highlander Pretty Packaging at convenient eye level. You have to get down on ones knees to extract the Savers packet from the shelving. A necessity for a cheapskate like me. For several years a 1 kg pack has been 75pence. A couple of weeks ago shock occured the price ha gone up to 81pence and the packaging 'prettified'. For me that is the benchmark to demonstrate food price inflation is real. I blame the farmers myself (!!) The Scotts by the way are about two half times the price.

Your example of oat price certainly isn't being driven by farm gate price

 

[Hindsight]

Your example of oat price certainly isn't being driven by farm gate price

Yes, I know, I was teasing. Actually reflects a reset of the price for that category I should imagine to cover increased costs of packaging and store running, profit margin. The farmer price element will be negligible or non existent in that reset! And the 81 pence I expect will now be Morrisons price for a few years until next reset.

 

[goodevans]

Yes, I know, I was teasing. Actually reflects a reset of the price for that category I should imagine to cover increased costs of packaging and store running, profit margin. The farmer price element will be negligible or non existent in that reset! And the 81 pence I expect will now be Morrisons price for a few years until next reset.

It would be nice to think they have to reset it again at next harvest to be honest if oats can make that jump to the barley/wheat price,which possibly they could ,with a lot less in the ground

 

[milkloss]

When did the Arab spring start? 2011 maybe? Perhaps it wasn't even food price related..... anyhow the index is getting toppy again.

 

[Hindsight]

It would be nice to think they have to reset it again at next harvest to be honest if oats can make that jump to the barley/wheat price,which possibly they could ,with a lot less in the ground

Indeed, It would be interesting to know from Morrisons category manager the rationale and break down of the components of the 8 pence increase. A bag of oats is the least processed form to buy oats (I know pretty obvious statement), so similar to milk, but it does allow one to assess the 'value' placed on the raw material by the supermarket sales staff. A 0.5pence per 1kg pack equates to £50 tonne at farm gate, And if you were offered £50 tonne more I expect you would be ecstatic.

 

[goodevans]

Indeed, It would be interesting to know from Morrisons category manager the rationale and break down of the components of the 8 pence increase. A bag of oats is the least processed form to buy oats (I know pretty obvious statement), so similar to milk, but it does allow one to assess the 'value' placed on the raw material by the supermarket sales staff. A 0.5pence per 1kg pack equates to £50 tonne at farm gate, And if you were offered £50 tonne more I expect you would be ecstatic.

I think you need to move your decimal point to the right to get a £50 increase,but I wouldn't rule that out by this time next year

 

[Brisel]

There will be even longer queues of morbidly obese folk at food banks, news cameras documenting their daily struggle to maintain a BMI of 40 or above

Quantity isn't the issue, it's quality. Too much fatty food & insufficient greens/balance in the diets.

 

[Brisel]

The masses will have to cut back on the NON essentials then , flash fone flash car flash holiday flash TV contract ect , or fookin starve ,
no reason to riot till they get priorities in order !

These people still only spend <20% of their income on food. The UK national average is around 8%. Go to the developing world and the % of household income spent on food is far higher. Food price riots will not be in Europe at first.

Why is there a bull run on commodities? I can't see a reason for it other than a drawdown on grain stocks & Chinese buying resources again. The FTSE 100 is still only at 2017 levels though climbing. The DAX is about level with late 2019. The Dow Jones & Nikkei are above the pre Covid levels.

 

[Sid]

These people still only spend <20% of their income on food. The UK national average is around 8%. Go to the developing world and the % of household income spent on food is far higher. Food price riots will not be in Europe at first.

Why is there a bull run on commodities? I can't see a reason for it other than a drawdown on grain stocks & Chinese buying resources again. The FTSE 100 is still only at 2017 levels though climbing. The DAX is about level with late 2019. The Dow Jones & Nikkei are above the pre Covid levels.

Dairy has risen due to China and Middle East coming into the market

 

[SilliamWhale]

The masses will have to cut back on the NON essentials then , flash fone flash car flash holiday flash TV contract ect , or fookin starve ,
no reason to riot till they get priorities in order !

What is the matter with you?

 

[Macsky]

Quantity isn't the issue, it's quality. Too much fatty food & insufficient greens/balance in the diets.

Quality is absolutely the issue, but let’s not demonise fat! Real, natural, saturated fat from cuts of whole meat and dairy are essential to good health. The whole obesity issue hinges on carbohydrate intake, too much refined/processed/high carb food intake which spikes insulin levels and leads to fat storage is the issue.

 

[Brisel]

Quality is absolutely the issue, but let’s not demonise fat! Real, natural, saturated fat from cuts of whole meat and dairy are essential to good health. The whole obesity issue hinges on carbohydrate intake, too much refined/processed/high carb food intake which spikes insulin levels and leads to fat storage is the issue.

There are more calories consumed than expended in many cases too.