to not be sure why politicians think food prices should be falling?

[cakeorwine]

Saw this headline

Supermarkets under pressure to explain high prices - BBC News

We have high food inflation. Lots of causes for that.
The rate of increase is slowing down - but it's still an increase.

If we saw food prices decreasing compared to the year before, then we would see food deflation - and I can't see that happening given all that goes into making food, delivering food and selling food.

I can see the rate of increase decreasing - but will we see food deflation?

Am I missing something - why do politicians think we should be seeing food deflation?

I think there is a huge issue around mark up with supermarkets.

They squeeze the producers and put the prices as high as possible- giving them a tidy profit.

I also think that a lot of fresh produce (fruit & veg) grown in the uk are very expensive. Reducing the prices of these items when they are in season will also have a knock on effect on public health.

It's one thing paying a standing charge that reflects the cost of distribution, but some suppliers have hiked it way beyond that.

The massive standing charges are because we all have to pay for the companies that failed. Just as with all privatisations, we pay a lot if they do well, and pay to bail out the putrid mess when they fuck up, but Sir Bufton Tufton and his Tory mates get rich all the time, it's heads they win, tails we lose.

Profit margins in food manufacturing are much higher than supermarkets. I’d be looking there and at energy companies. UK food retailing is recognised as one of the most competitive industries in the world

No way will companies decrease the price of anything when the customer has shown that they will pay that price. (They may do it for the odd item as a marketing tool.)

But this is it. For the majority of us, our amount of disposible income has shrunken permanently or at least for a good while (years). In general salaries need to increase in percent over the rate of inflatation to compensate for the price increases. That's going to need high pay increases for a few years - is that realistic? Not in my job - they'll just think we can pay you relatively less compared to the cost of living and you still turn up...kerching!

Although if you are a home owner and the interest rates come down, you may be better off (although it is doubtful that they will come back down to 1-2% as before).

If you rent, you are probably going to still paying the increased rents. I expect that landlords will be much less likely pass to on their decreased mortgage payments on when they know the market will bare it.

That’s terrible because it’s about 37% more expensive in the shop than it was!