Food prices have suffered their sharpest monthly fall in seven years in the UK, piling pressure on hard-pressed farmers and on supermarkets to pass on more savings to customers.
The Food Price Index , collated by the Food and Agriculture Organization Of the United Nations, showed its steepest monthly drop since 2008. The Index tracks wholesale prices of key food commodities, such as milk, wheat, cheese and meat. The 5.2% drop in the value of the index has been driven mainly by global oversupply, lower energy prices and the collapse of demand from the Chinese economy.
Collapsing food prices are bad news for farmers who are struggling already with a supermarket price war, and with changes to subsidy payments.
