New statistics about the price of household food in the UK finds that the consumer price index fell to around 4% in April, according to a report from The Guardian. Families around the UK were scrambling to squeeze the extra few pounds and pennies from cash loans for buying bare essentials such as milk and sugar because previously the cost of food prices continued to escalate.
What does this current stabilization mean for us?
The price index decreasing is a sign that things are either getting better in the long run or it is a short-term stopgap. Take a look at the insights below on what the food inflation stabilization really highlights:
- More non-food items can be purchased: As UK shoppers are less pressed when it comes to buying food; this means that non-food items can be bought more frequently. This means things like clothes are coming back on the radar as the cost of food has stabilized. Retailers are answering this need by giving more value for money such as buy one, get one free item for men & women that will encourage them to buy more clothes without breaking the bank.
- People are buying generic consumption brands: One reason for the decrease in food inflation could also be that shoppers are choosing supermarket brands over name brands to buy food. Instead of buying Tropicana, people are buying generic brands because they want to save more money without paying an extra mark-up for a name.
- Fresh food prices increase: Shoppers who like organic food products are finding that their food of choice is going up while supermarket food decreases. These rises can be sustained by families who want them because families who look for organic food have been budgeting for it for a longer amount of time.
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