Food Inflation Finally Cools In Europe After A Long Hot Summer

Summary

• Food price rises are finally subsiding in Europe. We saw the first Month-on-Month decline in almost two years in July.
• Many branded food manufacturers, however, are reporting lower sales as shoppers turn to more affordable goods.
• Combination of high food prices and sluggish growth means those volumes won't be returning anytime soon.

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By Thijs Geijer, Senior Sector Economist

Extraordinary rally in consumer food prices comes to an end

Food inflation rates have been cooling for the past couple of months, and July’s inflation figures even showed a small Month-on-Month decrease in