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A glimmer of good news – the input production costs of UK food and drink manufacturers have fallen for the first time since April 2016.
This provides optimism that future food price inflation will ease, reports Lloyds Bank, athough they fear it will be “some time” before this feeds through “if at all” to on-the-shelf food prices.
“This drop breaks sustained rises in production costs for food and drink manufacturers, which have been among the sharpest of any sector monitored by the Tracker.
“If production costs continue to fall, whilst welcome, it will still take some time before we see the benefit in terms of shelf prices. This is, in part, due to the long-term nature of contracts between the manufacturers and retailers, as well as the broader segments of the production chain.
