07/07/2022

Here are some key data on inflation in the budget areas. The pasta wave is by far the most notable, but others include chips (17%), bread (16%), ground beef (16%) and rice (15%).

At the same time, low annual average prices for six of the 30 articles fell. Decreases were measured in the prices of potatoes (<14%), cheese (7%), pizza (4%), French fries (3%), sausages (3%), and apples (1%).

The Office for National Statistics tracks prices for the cheapest groceries in the UK. Photo: Office of National Statistics

Budget pasta prices up 50% as inflation comes under scrutiny in value areas

A woman carries a shopping basket with groceries on May 22. Photo: Matthew Horwood/Getty Images

According to a new analysis from the Office for National Statistics (ONS), inexpensive pasta prices have risen 50% in the past year, but overall, lower-priced pasta prices in supermarkets have risen at the same rate as groceries overall.

The analysis found that budget ranges have increased in prices by about 6% to 7% in the year through April 2022, about the same as other grocery ranges.

The Office for National Statistics conducted the research after concerns, expressed notably by food writer Jack Monroe, that the broad inflation data did not reflect the plight of the poorest, who rely more on budget or value ranges.

The analysis suggested how price hikes (or disappearance of budget ranges) could affect poorer shoppers, with a huge 20% jump to the next price point for two-thirds of tracked items.

The Office for National Statistics cautioned that this was “a very experimental research based on scraping online supermarket data for 30 staple foods,” noting a number of limitations with the data.

Sainsbury plans to allocate £500m in lower prices amid cost-of-living crisis

A customer shops for fruits and vegetables at Sainsbury's supermarket in Walthamstow, east London, February 13.
A customer shops for fruits and vegetables at Sainsbury’s supermarket in Walthamstow, east London, February 13. Photo: Tolga Akmen/AFP/Getty Images

Sainsbury has announced it has pledged £500m to keep prices low between March 2021 and March 2023 amid the “huge impact” of the cost of living crisis.

Britain’s second-largest supermarket chain said on Monday that the £500m sum includes measures already taken last year, as well as some measures due to be launched next year.

Sainsbury’s said milk, eggs, meat, fish, fruits and vegetables and “household necessities” would be targets to keep prices low. The announcement did not say how much non-core prices will rise as households across the UK (and indeed the world) struggle with higher energy prices. UK inflation is at a 40-year high of 9%.

Sainsbury’s reported a net profit of £677 million in the year ending March 2022 and is expected to generate another £400 million in the current financial year.

Simon RobertsAnd the Sainsbury’s Director said:

The cost of living has a huge impact on the lives of our clients and colleagues and we understand that every penny counts right now.

In written comments, Roberts also made unusually clear that the lower prices were meant to retain market share – a key consideration for the UK’s largest supermarkets as they seek to fend off competition from Aldi and Lidl, both German rivals. He said customers “do not have to go anywhere else to get low prices.”

The latest draft of the EU’s sanctions package against Russia indicates that it will follow the general details described earlier – except for pipeline supplies wanted by Hungary and other Eastern European countries.

However, it appears that he will leave it up to the leaders of the EU member states to agree on the final details later.

This deal could mean that Europe will continue to pay Russia for oil – a highly controversial situation. Not to mention the billions of euros that are pouring into Russia for its natural gas.

25 days – counting – #European Union No agreement reached on banning Russia #oil imports. this is #European Union A summit can mean a disaster that is difficult to repair.

Silvia Berzoni May 30 2022

Reuters reported that the draft declaration, which refers to the gathering of EU leaders known as the European Council, says:

The European Council agrees that the sixth package of sanctions against Russia will cover both crude oil and petroleum products shipped from Russia to member states, with a temporary exemption for crude oil shipped through pipelines.

The European Council therefore urges the Council to finalize and adopt it without delay in order to ensure fair competition and equal opportunities in the EU internal market and solidarity among Member States in the event of a sudden interruption of supply.

This might be a rather weak gain for the FTSE 100, but it still hit a one-month high.

Markets rebounded late last week and the momentum continued on Monday (although US dealing desks will likely be absent later due to a holiday).

Some analysts attribute the optimism in the markets to the prospects of the Chinese economy rebounding after a period of severe shutdown that disrupted the market, which was once the engine of global growth.

Richard JaegerMarket Manager at interactive investorinvestment platform said:

Asian markets added to the positive momentum as China began easing lockdown restrictions in both Beijing and Shanghai. The prime minister announced that there will be a set of measures aimed at boosting the faltering economy, with more details to follow soon.

However, most of the damage has been done in recent months, with an inevitable decline in consumer confidence coupled with a rising unemployment rate and many economists predicting a decline in the current quarter. However, a marked improvement in the strained US-China relationship has also boosted sentiment, especially given the constraints that global economies have endured this year.

As a member of the FTSE 250 Index, Countryside is building homes like the ones in this digital demo of a project near Peterborough.
As a member of the FTSE 250 Index, Countryside is building homes like the ones in this digital demo of a project near Peterborough. Photo: characteristics of the countryside

It’s a fairly smooth start to the trading day on the London Stock Exchange (and likely to continue if there is a rare US bank holiday, which means Wall Street is closed). But there are some notable moves.

Among the middle hats on the FTSE 250 index is Hausbauer natural views The clear lead: Its shares are up as much as 29% after the San Francisco-based investor Incosive Capital Partners (who likes to call it in-cap) a £1.5 billion takeover bid — his second approach in the past two months.

Rif told In-Cap he would not enter into negotiations — to find the possibility of a higher bid, according to Monday’s stock exchange release.

In-Cap owns 9.2% of Countryside’s shares as of Friday.

Introduction: Russia’s plan to ban the European Union raises oil prices above $ 120 a barrel

Good morning and welcome to our live coverage of business, economics and financial markets.

Oil prices hit a two-month high as traders expect the deal to be delayed to limit Russian oil imports into the European Union, along with other factors such as rebounding demand in China as lockdown restrictions ease.

Brent crude futures rose above $120 a barrel on Monday morning for the first time since late March. The 50-cent gain for the day saw the North Sea index rise 0.4%, while its North American counterpart, West Texas Intermediate, also rose 0.7% to $115 a barrel.

The chart shows that Brent crude futures prices rose to a two-month high on Monday as traders expected a Russian oil embargo on Europe.
Brent crude futures prices rose to a two-month high on Monday as traders expected a Russian oil embargo on Europe. Photo: Refinitiv

According to the European Union’s foreign policy coordinator, Josep Borrell, the EU should be able to agree to new sanctions, including on Russian oil, ahead of a summit of leaders from all countries on Monday.

Borrell told FranceInfo, according to Reuters:

We have to decide unanimously. There were difficult conversations yesterday afternoon, as well as this morning.

I think this afternoon we can present to the heads of state and government of the member states an agreement.

However, it remains to be seen whether the proposed ban will have any effect, with European governments at odds. Hungary, in particular, led by Viktor Orban, who has long had a friendly relationship with Russian President Vladimir Putin, has stood in the way of the embargo in recent weeks, in part due to the country’s dependence on Russian oil.

The European Union is working on a compromise plan that would ban Russian oil in tankers but allow pipeline imports, meaning Hungary, Slovakia and the Czech Republic could continue to receive oil via the Soviet-era Druzhba pipeline, which was cut off by Ukraine. .

Asked whether plans to ban Russian oil imports could be subject to opposition from Hungary and other eastern European countries, Borrell said: “No, I don’t think so… There will be an agreement in the end.”

European stock markets started the week on a positive note, with the Stoxx 600 Index of major European companies up 0.7% at the open. Germany’s DAX rose 0.8%, and France’s CAC 40 rose 0.6%.

In the UK, the FTSE 100 Index is up 0.4% and the FTSE 250 Intermediate Index is up 0.9%.

US markets are closed today for the Memorial Day holiday.

schedule of work

10 am CET: Eurozone Economic Sentiment Index (May; previous 105; consensus: 104.9)

1pm CET: Germany’s annual inflation rate (May; previous: 7.4%; consensus: 7.6%)