Premier Foods will not raise prices for rest of year

Premier Foods, the maker of Mr Kipling cakes and Oxo stock cubes, has said it will not raise prices for the rest of the year.

The firm said it believed recent input cost inflation was "past its peak".

Figures on Wednesday showed inflation fell to 7.9% in June, but food price inflation remains high at 17.3%.

The announcement came as the company reported a 21% rise in sales in three months to 1 July, compared with the same period last year.

Alex Whitehouse, chief executive of Premier Foods, said the company's "good value" ready meals had "relevance in the current, challenging economic climate".

"We believe the recent period of significant input cost inflation is now past its peak and have no further price increases planned for the rest of 2023," he said.

Mr Whitehouse added that due to "positive momentum, and strong plans" behind its leading brands, the company forecast that full-year profit would be at the higher end of analysts' expectations, and said it has gained more of a share in the grocery market.

The company also saw more growth in its cheaper, non-branded groceries versus its branded groceries. Compared with a year ago, branded items grew over 25%, while non-branded, cheaper items grew by almost 40%, indicating that consumers were turning to cheaper food as the cost of living squeezes household budgets.

Premier Foods employs more than 4,000 people across Britain, and includes brands such as Batchelors, Bisto, Lloyd Grossman sauces and Sharwood's.

Earlier in the year, the company said it would close a factory in Staffordshire as it was "marginally loss-making", putting 300 jobs at risk.