When we look at a range of economic information, the squeeze has clearly been on. In 2017, consumers’ disposable incomes were eroded as inflation outpaced wage growth. The public finances also continued to come under pressure as demand for services rises at a faster rate than our ability to pay for them. Similarly, businesses have faced increasing cost pressures – and some more are actually coming into effect this month – which they haven’t been able to pass on fully to their customers, with profit margins therefore impacted. But as ever, farmers appear to be bucking this trend.
So, the UK has voted to leave the EU. But what does that actually mean? For now, it means no change, as David Cameron signalled today that his successor decides whether to trigger Article 50 of the Lisbon Treaty. Only when this happens does the clock start to tick on two years of negotiation for the UK’s exit from the EU. In the meantime, we have seen heavy falls in UK equities, sterling has slumped, and we can anticipate further short-term volatility. But what are the key questions emerging from the Referendum results from a NI perspective? Continue reading
With Balmoral Show starting tomorrow, here’s a snapshot of some of the latest data on the agri-food sector in Northern Ireland.
What a difference a year makes. In the football world, Leicester were languishing at the bottom of the English Premiership 12 months ago, now they look on the cusp of winning it. They have at least guaranteed a spot in Europe next year. Continue reading
What a difference a year makes. As you will see in this presentation – delivered to members of the Guild of Agricultural Journalists – there have been some big economic changes in the past year, and many of them have not favoured the agri-food industry. The presentation also touches on the latest Ulster Bank Ulster Fry Index, which you can read more about here.
We’ve released the latest Ulster Bank Ulster Fry Index. And it suggests that the price of your Ulster fry should be 8.5% cheaper than it was last year.
The items that make up the traditional breakfast are collectively the cheapest they have been in over 7-years. This is based on the official retail price statistics.
Bacon and butter biggest fallers
Bacon and butter are the biggest drivers of the fall in the Ulster Fry Index over the last year – down over 16% and nearly 17% respectively in the 12 months to the end of February.
The price of sausages is down 7.5 per cent in the same period, according to the index, with eggs 3.2 per cent lower.
October 2008 was the last time the Ulster Fry Index was as low.
Price up 35% in last 10 years
Whilst the collective price of these breakfast items is at its lowest in over seven years, looking over the longer-term reveals that they are some 26 per cent dearer than they would have been 10 years ago, and 37 per cent more expensive than in April 1998.
Index helps illustrate sweet spot for consumers
Food makes up a significant proportion of household spending. Food and drink is also a key sector of the Northern Ireland economy. So understanding how the prices of food stuffs are changing gives us some insight into both the current state of consumer finances, and also some of the challenges facing the agri-food industry, which employs around 90,000 people here, according to some estimates.
There are a wide range of quirky indices around the world – from the Big Mac Index to the Cappuccino Index – which are intended to put economics into layman’s terms, and to shed new light on important economic issues. Ours is the Ulster Fry Index, and it hopefully gives the person on the street a clearer idea of why their household finances currently are the way they are.
Of late, for instance, households have been benefiting from low or no inflation, falling food and energy prices, wage rises, and historically low interest rates. This has created something of a sweet spot for consumers, and perhaps helps explain things like the rise in number of cafes and restaurants in Belfast, plus the relatively strong retail environment that we have seen.
Price changes in the past year:
- Bacon -16.3%
- Sausages -7.5%
- Eggs -3.2%
- Butter -16.8%
- Bread -5.5%
- Mushrooms -0.7%
- Tomatoes -0.5%
- Milk -4.5%
- Coffee -8.2%
- Tea 0%
Download an extended note on the Budget here.
The 2015 general election was a speed camera for austerity, or so we thought. Given the content of the Budget back in March, the chancellor had been expected to put his foot down on the austerity accelerator. Instead, however, he is set to keep the austerity drive in cruise control, with the pace to remain steady.
There was a time when most sectors of the Northern Ireland economy looked on with envy at the environment in which the local agri-food sector was operating. The likes of heavy manufacturers were being hit by plummeting demand and soaring input costs, whilst the agri-food sector was by comparison basking in positively glorious conditions. Demand was strong and the weakness of sterling against the Euro afforded an envious competitive advantage against food and drink firms based in the Eurozone. The result was that whilst all of the key indicators for the economy in general were pointing downwards, the key indicators for the agri-food sector were very much on the up.
That was then; this is now.
Richard Ramsey delivered a presentation to members of the Guild of Agricultural Journalists and other members of the media this morning on the Northern Ireland agri-food sector and the economic context in which it is operating. You can view his slides here: