The UK British Retail Consortium's shop price index rose on food prices. The accompanying commentary was textbook for profit-led inflation. Poor harvests and sugar prices were blamed. When profits (rather than demand) lead inflation, retailers need to have a story that convinces consumers that the price increases are "fair". Consumers mistakenly think food prices are related to agricultural prices, which conveniently hides things like the 50% increase in the markup on consumer milk prices in recent months.
