Commenting on today’s inflation figures, James Walton, chief economist, IGD, said: “Headline inflation was on a downward trajectory for most of 2009, reflecting global price changes for energy and materials, excess capacity in the domestic economy and the competitive activities undertaken by businesses to maintain volumes.

"The last two months, however, have seen the inflation figure moving slightly upwards, although food prices remain stable in most categories. This is a reflection of a slightly easier supply situation and fierce price competition as retailers and suppliers fight for market share.

"Looking to the longer term, global demand for food is rising sharply and supply will be challenged to keep pace. Climate change could have a destabilising effect on crops. Food prices look set to remain volatile."

Ends
 

Notes to editors:

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Meeta Darji, Media Officer, IGD.
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