Prices are also forecasted to have a 5% increase for the next 18 months.
The hot summer has driven the prices of meat to go down while wheat goes up, according to a report by Prestige Purchasing.
Last August, meat experienced a 2.1% fall on meat and poultry prices which have lead the overall inflation to go down as well. The weather is said to have resulted to an increased slaughter levels as grazing pastures and feed stocks fell.
Meanwhile, Prestige also reported that the weather has also pushed the price of wheat-related products to rise despite last year’s predictions of a 10% drop.
It was also mentioned that sugar prices continue to decline as India and Thailand is predicted to have an 11% increase on global production year on year. Prestige also mentioned that there will be 17 million metric tonnes of sugar in 2018.
Shaun Allen, Prestige Purchasing Chief Executive, said: “Whilst the overall drop in inflation this month indicates positive news for operators, the outlook appears to look less encouraging, with the effects of the dry weather particularly on wheat and cereal crops looking set to add more upward pressure on food pricing over the coming months,” Shaun Allen, Prestige’s CEO, said.
“The natural volatility within the supply markets experienced this year has proven to be challenging enough for our industry, and with more turbulent times expected as we head towards Brexit, it will be critical that businesses take a proactive approach to managing the future risks of inflation.”
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