Food inflation increases by 6 percent by the end of the year, as a “important challenge” for the house budget, such as Christmas approaches, the leaders of the industry have warned.
Retail vendors have warned against rising prices and capacity Causing Must be Chancellor Increase in taxes in next BudgetAccording to two-thirds of the main financial officials, the price is expected to increase, according to British Retail Consortium (BRC).
A BRC survey found that 56 percent of the retail finance heads representing more than 9,000 stores, the “pessimistic” of trading situations in the next 12 months feels “pessimistic”.
Majority, 85 percent, previous price increase has increased for the increase in the employer of the previous budget for the increase in national Insurance And national SalariesIt is estimated to proceed in the coming year with two-thirds (65 percent).
While the current BRC figures keep food inflation at 4 percent, the organization predicts that it will climb up to 6 percent year-on-year by Christmas.
It said: “It will create important challenges for the domestic budget, especially in the run-up for Christmas.”
In addition to the cost increase, 42 percent of the main financial officials said they had been admitted, while 38 percent said that they had reduced the number of jobs.
It was reflected in official job data, with about 100,000 less retail Jobs In the first quarter of 2025 compared to the previous year, BRC said.
More than one -third (38 percent) of CFO said that they had cut investment in local communities, while 15 percent had already delayed opening new stores.
BRC Chief Executive Officer Helen dikinson Said: “Retail was square in the firing line of the previous budget, in which the industry collided with £ 7 billion in new costs and taxes.
“Retail vendors have done everything to mold their customers at a high cost, but their thin margin and employees were unnecessary, given the increasing cost of employment, the price hike was unavoidable.
“Now the results are being felt in homes, as there are many conflicts to face the rising cost of their weekly shops. It is up to the Chancellor to decide whether to fans inflation flames, or support the daily economy by supporting high road and local jobs.
In January, BRC predicted that Food prices The average of 4.2 percent will increase in the latter of the year as retailers increased the cost from the budget.
At that time, Ms. Dickinson said that modeling by the Trade Association and the heads of the industry suggested that “very little hope of prices is going anywhere” because retailers faced high national insurance (NI), national living wages and new packaging costs.
Last week, the market research firm World Panel, by the Pneumor, in the east, reported that the UK grocery prices had risen at their fastest for 18 months, which was amidst concerns about the rising cost of life from shopkeepers.
The inflation of the grocery price increased by four weeks to 5.2 percent on July 13, which increased from 4.7 percent a month ago and the highest level since January 2024.
Data indicated that rising prices are scheduled to add £ 275 to the annual grocery costs of shopkeepers.
