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|Commenting on the ongoing row over price between supermarkets and suppliers|
|Friday, 14 October 2016|
|Commenting on the impact of the ongoing row between supermarkets and suppliers, Gary Hobbs, Senior Equity Analyst at Investec Wealth & Investment: “We see this kind of inflation as inevitable given the Brexit-induced weakness in sterling. Products produced in the Eurozone are now nearly 20% more expensive and these two majors may well begin negotiations on behalf of the industry to determine an appropriate level of price increase across the board. The Big 4 retailers typically have 1-2 weeks stock so expect availability to fall if a compromise is not reached soon. A modest amount of inflation is good for Food Retailers, which have been facing price deflation over the last couple of years, depressing like-for-like sales.”|
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