FAO FPI Lowest Point Since 2010

The Food Price Index (FPI) published by the Food and Agriculture Organization (FAO) fell for the sixth month in a row in September 2014 averaging 191.5 points down 5.2 points from August and 12.2 points from the same time last year. The fall means that the index has now reached its lowest point since August 2010 and makes it the longest continuous period of falls since the 1990s. The five commodity groups that make up the FPI basket showed different degrees and directions of change with sugar and dairy the main contributors to the fall followed by cereals and oils, while meat remained firm.

Retail Sales Increase Steadily

Retail sales increased by 0.4% in August compared with July 2014. Growth was stronger over the year and increased by 3.9% when compared with August 2013. Growth in retail sales has increased steadily now for 17 consecutive months year on year and 18 consecutive months 3 months on 3 months. The overall picture therefore is one of growth according to the ONS.

The amount spent in retail increased by 0.2% compared with July and by 2.7% when compared with August last year. Average store prices fell by 1.2% in the August annual comparison, the largest fall since July 2009. Food prices fell by 0.1% the first annual fall since December 2004.

Online sales fell by 0.2% to 11% of overall sales. The amount spent online increased by 8.3% between August 2013 and August 2014.