High food prices could lift inflation - Barings

Baring Equity Income and UK Growth fund manager Charlie Deptford says the firm expects some sectors to be hit by softer consumer spending. “Retailers are already seeing profits impacted by the weather - the latest results from Sports Direct are a prime example,” he says. “Although we had been expecting softer consumer spending in Q3 2007 compared to the same period last year, the weather in recent weeks will likely mean a more dramatic decrease.” Deptford says food retailers are likely to be the hardest hit. “This year has been pretty poor compared to the strong summer last year, which ...