The British Retail Consortium (BRC) has lambasted recent claims of escalating food prices as “alarmist” and “unsupported by the evidence”. The response follows claims that record increases in the cost charged by food producers will be passed on to consumers.
BRC director general Kevin Hawkins (pictured) says that intense competition between food retailers will continue to keep prices down and that retailers are absorbing most of the impact of increasing costs themselves.
He adds: “Contrary to alarmist predictions customers will continue to benefit as retailers go on doing all they can to avoid passing cost increases on.”
The Office for National Statistics recently revealed the cost of food leaving factories increased by 7.4% in December compared to the same month in 2006. The increase was the fastest rate on record, according to the data.