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[loganair] 27/7/2022 19:54

Shop prices are rising at their fastest pace in at least 17 years, as retailers passed on huge cost increases to consumers, according to new figures.

Prices rose 4.4 per cent in July, with food prices jumping 7 per cent, the British Retail Consortium found. It was the fastest pace of price increases since the BRC began compiling figures in 2005.

Staple items including butter and vegetable oils saw some of the biggest price hikes after producers were hit by huge rises in the cost of energy, fertiliser and transport.

Shoppers were advised to prepare for worse to come as rising costs continue to be passed along through supply chains from producers to consumers.

“Rising production costs – from the price of animal feed and fertiliser to availability of produce, coupled with exorbitant land transport costs, lead to some of the biggest rises being seen in dairy products, including lard, cooking fats and butter. Meanwhile, non-food prices were hit by rising shipping prices, production costs and continued disruption in China.

“As inflation reaches new heights, retailers are doing all they can to absorb as much of these rising costs as possible and to look for efficiencies in their businesses and supply chain.

“With households enduring a cost of living crunch, retailers are expanding their value ranges to offer the widest variety of goods to those most in need, providing discounts to vulnerable groups, and raising staff pay. Nevertheless, households and businesses must prepare for a difficult period as inflationary pressures hit home.”

Mike Watkins, head of retailer and business insight at market research company NielsenIQ, said: “ConsumersR17; household budgets are coming under increasing strain and shelf-price increases in both food and non-food have accelerated in recent weeks as more cost price increases come through the supply chains.

“The grocery industry in particular is under intense pressure as retailers try to shield customers from the full impact of inflation. At the same time, there has been an increase in competitive intensity so customer retention over the summer holiday season will be key to help stem any further fall in volumes.”

[spob] 27/7/2022 11:30

Iceland is owned/run by the Walker family

They are good honest decent people

wish they owned Sainsbury's

lol

[rolo7] 27/7/2022 11:16

Good Iceland never paid back it's business rate to government when other large supermarkets did

[spob] 27/7/2022 10:55

Energy bills will push millions into unmanageable debt, MPs warn


Report calls for more support for people who are struggling to pay as it lambasts government and Ofgem

The average dual-fuel tariffs were predicted to rise to £2,800. They are now forecast to reach £3,244 when the next price cap takes effect in October.


Rob Davies

The Guardian

Tue 26 Jul 2022

Millions of people will be plunged into “unmanageable” debt this winter unless the government comes up with more support for those struggling to pay their energy bills, MPs have warned.

In a report focusing on how to ease punishing energy costs now, while guarding against future crises, the business and energy select committee said:

The energy price cap should be replaced with a “social tariff”.

The energy regulator Ofgem has been “negligentR21;.

A national home insulation programme should be launched urgently.

The committee said a £15bn package of support for bill payers, announced in May, had already been rendered obsolete by soaring energy prices, a driving force behind a 40-year-high 9.4% inflation rate that has been eroding household finances.

The then chancellor, Rishi Sunak, who now is vying with Liz Truss to be the next prime minister, announced the measures at a time when average dual-fuel tariffs were predicted to rise to £2,800.
hand adjusting a thermostat

They are now forecast to reach £3,244 when the next price cap takes effect in October. That means that bills will have risen by nearly £2,000 within a year, compared with the £1,200 that Sunak’s measures will make available to only the most vulnerable households.

The committee said the lack of any further support, amid the broader cost of living crisis, would lead to an “unacceptable rise in fuel poverty and hardship this winter”.

“Once again, the energy crisis is racing ahead of the government,” its chair, Labour MP Darren Jones, said...

“We were told by a number of witnesses, ‘If you think things are bad now, you’ve not seen anything yet.’

“This winter is going to be extremely difficult for family finances and it’s therefore critical that public funds are better targeted to those who need it the most.”

In its 90-page report, the committee called for the price cap to be replaced with a “relative tariff” for all bill payers that would limit the difference between a suppliers’ cheapest and dearest tariffs.

The most vulnerable and low-income households would pay a “social tariff”, with discounted bills funded either by wealthier bill-payers, or through taxation.

In a submission that helped inform the report, the Scottish Power chief executive, Keith Anderson, suggested the cost of this should be borne by those who could afford to pay.

The MPs also called for a scheme to help households pay off debts over a longer period and also lashed out at the “injusticeR21; of vulnerable people being moved to more expensive prepayment meters.

The report also reserved criticism for ministers and the “negligentR21; energy regulator Ofgem, after the soaring wholesale gas prices over the past 18 months exposed weaknesses in the UK market.

Dozens of mostly small energy suppliers, many ushered into the market by Ofgem’s attempts to increase competition, have fallen like dominos after failing to hedge against soaring wholesale gas and electricity costs that have also been exacerbated by Russia’s invasion of Ukraine.

The cost of the collapse of suppliers is expected to add another £94 to annual energy bills and could increase if the government cannot recoup funds from the sale of Bulb, the largest supplier to fail so far.

“Ofgem’s incompetence over many years enabled inadequately resourced and inexperienced founders to start energy companies,” the report said.

“It failed to supervise regulated companies, which in turn took high-risk decisions including not hedging properly and using customers’ money to offer unsustainable prices that undercut well-run energy companies.”

The committee acknowledged that Ofgem was moving forward with a plan to reform its regulatory system but said MPs were sceptical about the regulator’s ability to do this and also urged it to reconsider a plan to ask suppliers to “ringfenceR21; customer credit balances. Suppliers such as Octopus Energy have warned this proposal could push bills even higher.
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A spokesperson for Ofgem said: “While the unprecedented rise in global gas prices would have resulted in market exits under almost any regulatory system, we have been clear and transparent about the fact that suppliers and Ofgem’s previous financial resilience regime were not robust enough.

“No regulator can, or should, guarantee companies will not fail in a competitive market but we are working hard to reform the entire market, as well as closely scrutinising and holding individual energy suppliers to account, to further strengthen the regulatory regime.”

The report also called for longer-term solutions to protect the UK against future gas price shocks. The MPs urged the government to launch a national programme to insulate houses “street by street”, to limit demand for gas to heat homes.

They told the government to “stop announcing short-term policies and moving existing budgets around and instead fully fund a national retrofit programme that businesses, homeowners, and tenants” could invest and take part in.

[blackhorse23] 26/7/2022 23:29

It has reached its pick , I have moved to CURY (LSE) which looks excellent investment. https://www.currysplc.com/

[the_man_with_the_pink_gun] 26/7/2022 16:50

PM. RISHI?

[peeks007] 26/7/2022 15:47

This is going to 180p

[tuftymatt] 26/7/2022 07:22

I think so loganair if you have a job / skill that's in demand.

[loganair] 25/7/2022 22:02

HGV drivers who operate out of Sainsbury’s distribution depot in Basingstoke have won a 12% pay rise after their union agreed a deal with the supermarket group.

Around 200 drivers at the Hampshire site voted by 92% in favour of the one-year agreement negotiated by Unite. The union noted that the deal was above the real rate of inflation, currently at 11.8%, and was won without industrial action.

Implications:

A pointer for others……and more to come?

[tuftymatt] 25/7/2022 12:17

Yeah this and Tesco have both been on good runs when many said they would struggle following their latest figures.

Happy to hold both as I think they can adapt to difficult trading conditions.

[action] 25/7/2022 11:49

Going up. Reversal in trend happening.

[tuftymatt] 23/7/2022 08:44

I am no chart expert but the RSI is as high as it was in Jan and late Mar.
Now if only the share price was back to the levels seen then too!!

Really happy to hold this as my average is now positive after buying the dips and the recent climb. The divi as it stands is very healthy too.

[action] 22/7/2022 20:20

Is there reversal in trend? Anyone who knows chart pls.

[blackhorse23] 20/7/2022 01:52

https://www.mcbride.co.uk/about-us/corporate-policies/board-matters/

[tuftymatt] 18/7/2022 07:10

My thoughts too smurfy as I don't think it's unrealistic to look at the May high as a short term target if the wider economic news doesn't implode.

[smurfy2001] 17/7/2022 16:01

Got my dividend, will reinvest on a down day.

[loganair] 14/7/2022 17:00

s2001 - almost every thing we do takes energy and that especially includes the production of foods.

[gswredland] 14/7/2022 16:32

Sorry guys when is this ex divi?

[smurfy2001] 10/7/2022 22:10

loganair, given most of the inflation is in energy (oil & gas in particular) l disagree with what you say.

[dipa11] 10/7/2022 21:01

Shorting is reduced dramatically!https://www.shorttracker.co.uk/company/GB00B019KW72/

[topazfrenzy] 06/7/2022 14:26

Tax cuts are coming whether you like it or not

[loganair] 06/7/2022 12:07

Also lowering taxes will only increase demand, when there is already to much demand and too little supply.

Lowering taxes at the moment will only increase inflation, increase the cost of living.

Therefore there is a need to lower demand so it equals supply.

[topazfrenzy] 06/7/2022 11:56

Lower taxes bring in more revenue not less