Supermarket price wars cause inflation fall
Recommend on Google+
Figures released today show that inflation has fallen to 4.2% in December. Many retailers, in particular the supermarkets launched heavy tactics to ensure sales in the run up to Christmas.
A supermarket price war broke out after Tesco announced a £500 million price-cutting campaign, Asda guaranteed to be 10% cheaper than its rivals and Sainsbury’s launched its own brand price matching scheme.
The drop in the CPI rate was the biggest monthly fall since April 2009, and the lowest rate since June 2011.It was due to lower fuel prices and cheaper clothing, said the ONS. The figures showed a 2.8% drop in the price of clothing and footwear as retailers cut prices to attract customers in the run-up to Christmas. However, food prices rose by 1.4%, despite recent fierce competition between the main supermarket chains.
blog comments powered by Disqus
Tags
activity, advertising, affordability, alistair darling, anti-competitive behaviour, anti-dumping, apple, appreciation, aqa gcse economics, articles, asia, balance of payments, balance of trade, bank of england, banks, basic economic problem, basket of goods, beat the teacher, benefits, bidet, birthrate, borrowing, budget, budget deficit, budget surplus, business growth, business objectives, capacity, capital, car industry, car manufacturing, cash cow, china, chocolate, christmas trees, class task, cocoa, competition, competition commission, competition in action, competitive markets, complements, conditions of supply, confidence, congestion, conspicuous consumption, construction, consumer confidence, consumer spending, consumers, cost of living, costs, costs of production, costs, revenues and profits, cpi, credit crunch, cross price elasticity of demand, currency, data, data response, debt, deficit, delicious data, demand, demand and supply, demand and supply in action, demand for labour, demerit good, demerit goods, depreciation, derived demand, diagram, diagrams, diseconomies of scale, dollar, double dip, double-dip, downturn, easyjet, economic growth, economic gw, economic policies, economics, economies of scale, economy, elasticity, elasticity of supply, employment, end of term activity, enterprise, eu, euro, eurozone, exam advice, exam help, exam practice, exam style questions, exam technique, excess demand, exchange rate,All tags for the GCSE Economics Blog
