All eyes on elasticity:Despite doubts six months ago,the sector has shown very good pricing power,but the question now moves quickly on to elasticity of volumes to record pricing.However,with average inflation running in the low to mid-teens this year,it's not surprising that sector price/mix in Q1 rose to a record level of 7.6%.We do not expect Food/HPC pricing to peak until Q3 at the earliest,but the acid test will be elasticities in Europe in the coming quarters given there is only one window per year to take pricing Whilst we think that pricing will become progressively more difficult to take with retailers increasingly pushing back,we still on balance believe it will be realised because there remains significant margin under-recovery.Clearly those companies that have already taken the bulk of their pricing are better positioned than pricing laggards.The issue is that we don't see inflation coming down anytime soon,which means that even the most proactive companies probably need another round of pricing.