General inflation is leaving dairy behind

Published 14 December 16

The cost to consumers for milk and cheese at retail level has not kept up with general inflation since 2010. The general price level, as measured by the Retail Price Index (RPI), has been rising at a steady rate of about 3% per year. In comparison, retail prices for cheese have risen by just over 1% per year while fresh milk prices have fallen by 1.4% per year.

Fresh milk prices remained relatively stable until the beginning of 2015, but had not been keeping up with the general upward trend in retail prices. Cheese prices, on the other hand, rose in line with general inflation until early 2015. From the beginning of 2015, retail prices for both products saw an increased rate of decline, with prices falling on average by 4% for milk and 8% for cheese.

 RPI dairy