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Food prices rise as inflation returns to British supermarkets
http://www.telegraph.co.uk/business/2017/01/10/food-prices-rise-inflation-returns-supermarkets/
Prices are rising again in the UK's supermarkets
Shop prices are rising across the UK's supermarkets. Prices will have to go up to cover higher costs as a result of a weaker pound. Firstly, there was a deflation with the british coin and supermarkets had to apply their skills not to lose customers. First of all they lowered prices and then slowly began to rise them starting with the Premium and specialized items. As people started to spend more money, sales continued to increase. The rise of the discounters, Aldi and Lidl, had led the major supermarkets to slash prices in order to hold onto shoppers. This benefits brought them to open new stores in order to size more of a market and to have more power.
Why has the market shifted?
At the end, there was a shift in supply.
There was an increase in supply because after making so many changes within the price, the sales increased by 11.8 taking its market share by 6. There was such an increase in products that Aldi and Lidl opened new stores. Not only there was a change in producer expectations but also a change in resource prices because they had to slash them. Finally, they could have expected the worst of their sales for the increases, but there was an opposite result from which they benefit .