Inflation tailwind for Australian supermarkets as cost pressures build, Jefferies says

By Reuters News

** Jefferies supermarket inflation index shows prices rise 3.5% YoY in September quarter, easing from 3.7% in June as fresh-food inflation moderates

** The index tracks weekly prices for fixed baskets of products at supermarkets

** Food inflation buoying sales, though political and media scrutiny may cap margin gains, brokerage says

** Expects inflationary pressure to be compounded by global Super El Niño event, while retailer price investment may provide some offset

** Says promotions narrowed but deepened in September quarter, with Coles COL.AX discounting more products and at greater depth than Woolworths WOW.AX

** Australian consumer staples .AXSJ ease 0.5% by midday, with WOW and COL among biggest drags

** .AXSJ up 10.8% YTD, with WOW advancing 30%, COL adding 7%.

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.