Greggs warns of increase in prices
Greggs, the baker with exposure to many areas of the country, has today warned that an increase in wheat prices will ultimately feed through to the bottom line. The company expects bread and similar products to increase in price in the short to medium term although the company believes that the short-term wheat price is inflated. The price of wheat has increased by over 30% during the last seven days due in the main to issues with the Russian and Pakistan wheat crop. This has pushed the price of wheat to a two-year high on the commodity markets as investors and market participants search for secure supply lines.
Any increase in the price of bread, which many believe could be as much as 15pm a loaf, will ultimately feed through to the cost of living in the UK and the inflation figure. Inflation is currently over 3%, which is well above the Bank of England's target rate of 2%, with the potential to move higher in the short to medium term. How this will impact upon monthly budgets in the UK remains to be seen but this could not have come at a worse time for the UK public. Even UK base rates, currently at 0.5%, are having little impact upon consumer and business sentiment.
Trading standards officers highlight short measures
Trading standards officers in Birmingham have highlighted that in their opinion 9 out of 10 pints they tested in the Birmingham area were in effect short measures. They found that the average pint was 3.94% short which equates to around £400 million in additional revenue (if replicated across the UK) which UK drinkers are paying for drink which they do not receive. Indeed one "pint" was said to b...Read More
Ofwat set to push ahead with price reductions
The water watchdog, Ofwat, is set to push ahead with price reductions across the water sector in what is being seen as a significant victory for UK consumers and UK businesses. While initially it was believed the average water bill would increase by £31 a year before inflation, the regulator surprised the industry somewhat with calls for a 4% reduction in prices before inflation (which equates to...Read More
UK power companies under pressure over increased direct debits
It has been revealed that a number of UK power companies are placing substantial pressure on their customers to increase direct debit monthly payments. While the energy companies argue that overpayments in the summertime will make up for underpayments in the wintertime there are concerns that the industry is using as a way to increase short-term cash flow.
Many consumers are reporti...
Even The DIY Market Is Seeing Large Price Rises!
While the property market in the UK continues to fall, more and more home owners seem to be looking towards the DIY market. However, the signs are that even this area of the economy is experiencing high inflation with prices moving higher. A report by the Royal Institution of Chartered Surveyors has revealed details of price rises over the last couple of years, which have pushed the cost of home...Read More
Are we paying the price for selling off the UK utility sector?
When you look at countries such as France, where the government have introduced specific laws to protect French utility companies from foreign ownership, the UK market has perhaps lacked the protection which sectors such as utilities demand. It was the Conservative government which brought about the privatisation of utility companies in the UK although nobody quite expected them to fall into the h...Read More