ISLANDERS could “force” a drop in food prices with smart shopping, according to a consumer expert, after competition between supermarkets caused some costs in the UK to fall for the first time in two years.
The British Retail Consortium revealed that price reductions for dairy, margarine, fish and vegetables had helped to bring down the price of an average food basket by 0.1% compared with the previous month.
Carl Walker, who chairs the Jersey Consumer Council, which runs pricecomparison.je, said that while the fractional drop was unlikely to have a direct impact on Jersey and it was “too early to start celebrating”, it could be the “first sign of a significant slowdown in food prices”.
And Mr Walker said that prices were still “astronomically higher” than this time last year.
Jersey’s inflation rate dropped from 12.7% to 10.9% in June, according to the most recent figures released by Statistics Jersey, but food remained the second largest contributor, having risen by 15% in the 12 months from June 2022. The highest increase was housing costs, at 27.4%.
The BRC said “fierce competition” between supermarkets contributed to the slight drop in food prices.
Mr Walker continued: “The fact that they are driven by competition shows the need for Jersey consumers to shop around and shop with their feet. Only then will retailers get the message and become more competitive with their pricing.
“Food retailers have the flexibility to respond quickly to demands and to consumers habits, but this demonstrates that consumers hold the power and can make a difference.
“A Jersey consumer could potentially force that price drop to happen. While the UK has popular discount supermarkets which drives competition, Jersey has more high-end supermarkets and that’s why Islanders need to push that competition themselves.
“Food retailers have the flexibility to respond quickly to demands and to consumer habits.”
Mark Cox, the chief executive of the Coop, added that there had been “some good news locally”.
“We’ve been witnessing a good improvement in food price inflation, reminiscent of the positive trends seen in the UK,” he said.
“This development should bring a smile to the faces of consumers as we approach the festive season. However, we want to keep a watchful eye on wage inflation and the uncertainty surrounding rising fuel prices, as these factors can impact food pricing.”
In the face of “price increase requests” from suppliers, he said, the Coop had “managed to secure price reductions in various categories”.
Mr Cox added: “Fresh chilled dairy, some protein lines, bakery, and select grocery products have all seen decreases in prices, which we’ve promptly passed on to our valued members.
“The local competition remains robust, and we’re delighted to see consumers actively seeking out value through promotions and lower prices at different stores.”
A SandpiperCI spokesperson also said there had been a “noticeable drop” in the prices of some items and assured Islanders that “where wholesale costs have been reduced by SandpiperCI’s UK partners, those reduced prices have and will continue to be reflected in Sandpiper’s Jersey stores”.
