Inflation tailwind for Australian supermarkets as cost pressures build, Jefferies says
BUZZ-Inflation tailwind for Australian supermarkets as cost pressures build, Jefferies says ** 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%.
(Reporting by Kumar Tanishk in Bengaluru)
((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk;))
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