The Reserve Bank of Australia has delivered some welcome news to businesses beginning to struggle as economic fears grip the world by reducing the official cash rate by 1% to 6.0%. The 100 basis point cut announced this afternoon was double the 50 basis point reduction anticipated by most economists. It remains unclear the true impact of the cut on borrowers, as banks battle to raise funds in overseas money markets. The shock decision was due to financial markets taking a “significant turn... ...Read more »

Decisions by manufacturers to shrink product sizes in order to prevent price hikes have disappointed consumers, who instead seek larger package sizes with lower cost per serving. In more positive news for many manufacturers, though, the recent surge in private label sales in America has, contrary to popular belief, not been driven by national brand abandonment, according to The Nielsen Company. Private label Supermarkets across the western world are embracing private labels, with reports that consumers... ...Read more »

The UK’s leading retailer, Tesco, has unveiled a “£5 a day” meal plan, which will highlight to consumers the potential to feed a family of four for such a low cost as consumers begin to struggle with the high cost of living expenses. A Tesco chef has created a special seven day meal plan including meat, pasta, ice cream and enough fruit and vegetables to merit each family member getting three healthy meals including their five vegetable portions a day. The chef’s menu comes... ...Read more »

A new consumer group, Action Village, is planning to use the power of a large group to coerce retailers to drop their prices. Action Village is seeking to gain one million members before they plan to go to the negotiating table with supermarkets, petrol chains and other retailers with regard to possible discount offers.”We’re aiming to build an army of consumers and empower them to take action against the obscenely rising prices that we’re encountering at the moment, particularly... ...Read more »

The issues of food and health, the environment and food inflation formed the core themes of the Food and Drink Federation (FDF) President’s speech at the recent FDF President’s Dinner held at the Waldorf Hotel in London. Iain Ferguson, the President of the FDF, highlighted the ongoing challenges currently facing the food and drink manufacturing sector particularly: food labelling, reformulation, environmental best practice, and the new demands put on our food supply. With regard to health,... ...Read more »

The Reserve Bank of Australia have left the cash rate unchanged at 7.25% despite inflation being at decade highs. The RBA Board made the decision at their monthly meeting, which was held in Sydney this morning. Inflation pressure has been rising steadily and is now well above the target level of 2-3%; with March data revealing inflation of 4.2%. However, the rising food, fuel and finance costs globally have obviously concerned the RBA and, with much of the inflationary pressure external to the Australian... ...Read more »

The Reserve Bank of Australia is now more likely to consider raising interest rates again in May following the release of inflation data for the March quarter. CPI rose 1.3% in the quarter, resulting in a CPI figure for the year to the March quarter of 4.2%. The figure was higher than analyst forecasts of 4% and markedly above the 2-3% level which the RBA targets, indicating that rates could rise next month. Education and health prices were the biggest contributors to the high quarterly figure with... ...Read more »

As the price of food continues to rise protests have been becoming more prevalent. While few major protests have been held so far there is growing concern that continued rises will cause greater social unrest and political leaders in many Asian countries, particularly Myanmar, Thailand, China and the Philippines, are under immense pressure. In Argentina, where the urban population is significantly greater than the rural population, the Government sought to increase tariffs on grain exporters to try... ...Read more »