Grocery price inflation hits four-year low

PRICE inflation for everyday items across Europe has hit its lowest level since 2010 after falling for a fifth quarter in a row, according to figures released today.

Sales of fast moving consumer goods (FMCG), which includes everything from toiletries to fizzy drinks, rose 3.1 per cent year-on-year in the fourth quarter of 2014.

This growth was driven by a 1.5 per cent rise in sales volumes and just a 1.6 price rise in prices paid – the lowest level since the fourth quarter of 2010 when prices rose by 1.5 per cent, insights company Nielsen said.

“Aggregate European retail growth is being held back by the region’s big five countries, which are not perform­ing particularly well,” Retail insights director Europe, Jean-Jacques Vandenheede, said.

Greece was the worst performer with sales growth down 5.2 per cent. The UK saw a 0.3 per cent decline in sales volume.

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