Food inflation could ease after corn prices plummet
There are hopes that food inflation could ease after the price of corn took its biggest fall for 15 years yesterday.
Prices fell 10% after the US Department of Agriculture said farmers were sowing large amounts of the crop, prompting expectations that stock levels would remain high.
The report said farmers had planted 92.282 million acres with corn this spring, well above an average trade estimate of 90.767 million acres, according to the BBC.
Meanwhile, Russia is expected to lift a year-long ban on grain exports soon.
The price of grain not only affects cereal prices but also has a knock-on effect on meat and dairy prices because it is used as feed for livestock.
However it may take months for lower wholesale prices to feed into retail prices.
Food inflation has been approaching 5% in recent months in the UK.
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By Neil Gerrard
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