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Daily Mirror
10 hours ago
- Business
- Daily Mirror
Brits could see grocery bills jump up by '£275' amid inflation forecasts
The British Retail Consortium (BRC) has cautioned about predicted inflation rises The cost of food is set to be six per cent higher by the end of the year compared with the year before, posing a "significant challenge" ahead of Christmas. Retailers have warned about rising costs and potential layoffs if the Chancellor increases taxes in the upcoming budget, with two-thirds of finance directors expecting additional price increases, the British Retail Consortium (BRC) revealed. A worrying 56 per cent of retail finance chiefs – representing more than 9,000 shops – have expressed 'pessimistic' views regarding business outlook for the next year, BRC research indicates. The consortium counts major UK grocers such as Tesco and Sainsbury's among its members. An alarming 85 per cent have admitted to raising prices due to the last budget's hikes in employer's National Insurance and the National Living Wage, while 65 per cent anticipate additional increases on the horizon. With current food inflation figures at four per cent, the BRC has forecasted a jump to six per cent above the previous year's levels by the festive season, warning: "This will pose significant challenges to household budgets, particularly in the run-up to Christmas." Amid soaring prices, 42 per cent of finance directors have put a stop to hiring, and 38 per cent have reduced in-store staff numbers. This trend is reflected in the latest employment figures, with nearly 100,000 fewer retail jobs in the first quarter of 2025 compared to the previous year, as reported by the BRC, reports Glasgow Live. Additionally, more than a third of Chief Financial Officers (38 per cent) have cut back on community investments, and 15 per cent have postponed new store openings. BRC chief executive Helen Dickinson said: "Retail was squarely in the firing line of the last budget, with the industry hit by £7 billion in new costs and taxes. Retailers have done everything they can to shield their customers from higher costs, but given their slim margins and the rising cost of employing staff, price rises were inevitable. "The consequences are now being felt by households as many struggle to cope with the rising cost of their weekly shop. It is up to the Chancellor to decide whether to fan the flames of inflation, or to support the everyday economy by backing the high street and the local jobs they provide." Earlier in January, the BRC had forecasted a 4.2 per cent increase in food prices during the second half of the year, as retailers grapple with heightened expenses stemming from the budget. At that time, Ms Dickinson remarked that projections by the trade association and industry leaders indicated there was 'little hope of prices going anywhere but up' as retailers were hit with increased National Insurance (NI), National Living Wage, and new packaging costs. Just last week, market research firm Worldpanel by Numerator, previously known as Kantar, revealed that UK grocery prices had soared at their sharpest rate in 18 months, sparking worry among consumers about the escalating cost of living. Grocery price inflation jumped to 5.2 per cent in the four weeks leading up to July 13, a rise from 4.7 per cent the previous month, hitting the highest point since January 2024. The figures suggest that shoppers could see an average increase of £275 in their annual grocery bills due to the climbing prices. Sainsbury's and Tesco have been contacted for their thoughts. A HM Treasury spokesperson also said: "We are a far cry from the double-digit inflation we saw in the last few years. "But we know that people are still struggling with high bills, which is why we are determined to put more money into people's pockets, and already, we expanded free school meals to over half a million more children, we're rolling out free breakfast clubs in every primary school and we have boosted the national living and minimum wage. "As part of the Plan for Change we are reforming business rates to level the playing field, have capped corporation tax for the duration of parliament and have taken 865,000 small businesses out of paying employer National Insurance through increasing the Employment Allowance." We also treat our community members to special offers, promotions, and adverts from us and our partners. If you don't like our community, you can check out any time you like. If you're curious, you can read our Privacy Notice here
Western Telegraph
12 hours ago
- Business
- Western Telegraph
Tesco, Sainsbury's, Asda prices to skyrocket, experts say
The Autonomy Institute think tank said that climate-induced price increases for everyday food items could push almost 1 million people into poverty. The UK is at particular risk thanks to heatwaves and droughts. Under a high-emission 'worst-case' scenario, food prices could rise by 34%, the study found. Just me and mother in the house, neither of us have particularly expensive tastes but I've just been to Tesco's and managed to spend £99 on the weekly shop (£113 before Clubcard prices and vouchers taken off). It's quite scary how expensive things have become now. — Pete Hind (@toonpete85) July 18, 2025 Under a 'best-case' scenario, the cumulative food price inflation could still reach 25% by 2050. Heatwaves in the UK could cost an average household between £917 and £1,247 by 2050, it added. It comes after the UK's leading retailers like Tesco, Asda, Sainsbury's and Morrisons have warned over the changing landscape of the retail industry owing to the searing and scorching heatwaves the UK has experienced. Will Stronge, the chief executive of the Autonomy Institute, said the UK could look at introducing 'buffer stocks'. 'Climateflation is no longer a distant risk; it's a present reality,' Stronge told the Guardian. Recommended reading: 'We need to build real economic resilience – and that means rethinking what public service provision can and should provide in the face of climate disruption: from delivery of basic essentials to publicly funded diners and a national buffer stock.' The British Retail Consortium (BRC) said rising fruit and vegetable prices had contributed to a jump in food price inflation in June. Helen Dickinson, the BRC chief executive, said: 'Retailers have warned of higher prices for consumers since last year's autumn budget and the huge rises to employer national insurance costs and the national living wage. 'We predicted a significant rise in food inflation by the end of this year, and this has been accelerated by geopolitical tensions and impacts of climate change.'
Powys County Times
13 hours ago
- Business
- Powys County Times
Shopping from Tesco, Sainsbury's, Asda 'set to rise by £275'
Brits have been warned that the annual price of shopping could rise by nearly £300 by the end of the year. Industry leaders have predicted food inflation will rise to 6% causing a 'significant challenge' to household budgets in the run-up to Christmas. The BRC, whose figures now put food inflation at 4%, said prices would rise year on year by Christmas. BRC chief executive Helen Dickinson has said households are struggling to cope with the rising cost of their weekly shop. Food is outrageous now. My weekly "big shop" is about £40 more expensive than perhaps 18 months ago. Then you have to check it out yourself. Pay more and do the store's work for them. I've 3 teenagers. I've only got to blink and the fridge is ransacked! — ClaireJH (@HillClaireJ) July 6, 2025 Annual grocery spending to rise by £275, experts warn In January, the BRC predicted that food prices would rise by an average of 4.2% in the latter half of the year as retailers battled increased costs from the Chancellor's budget. Last week, market research firm Worldpanel by Numerator, formerly Kantar, reported UK grocery prices had increased at their fastest pace for 18 months. Grocery price inflation accelerated to 5.2% in the four weeks to July 13, up from 4.7% a month earlier and the highest level since January 2024. The data also indicated that rising prices are set to add an average of £275 to shoppers' annual grocery spending. BRC chief executive Helen Dickinson said: 'Retail was squarely in the firing line of the last budget, with the industry hit by £7 billion in new costs and taxes. 'Retailers have done everything they can to shield their customers from higher costs, but given their slim margins and the rising cost of employing staff, price rises were inevitable. 5 ways to save money on your weekly food shop 'The consequences are now being felt by households as many struggle to cope with the rising cost of their weekly shop. "It is up to the Chancellor to decide whether to fan the flames of inflation, or to support the everyday economy by backing the high street and the local jobs they provide.' Drought could also cause food prices to rise The warning comes as the Autonomy Institute think tank is also predicting food price rises. It says extreme weather could drive up food prices by more than a third by 2050. Under a high-emission 'worst-case' scenario, food prices could rise by 34%, a study found. Recommended reading: Under a 'best-case' scenario, the cumulative food price inflation could still reach 25% by 2050. Heatwaves in the UK could cost an average household between £917 and £1,247 by 2050, it added. It comes after the UK's leading retailers like Tesco, Asda, Sainsbury's and Morrisons have warned over the changing landscape of the retail industry owing to the searing and scorching heatwaves the UK has experienced.
The Independent
13 hours ago
- Business
- The Independent
Businesses issue urgent tax warning to Rachel Reeves
Britain's biggest retailers have urged Rachel Reeves not to raise taxes in the upcoming autumn budget, warning it could lead to higher shop prices and negatively impact household incomes and the economy. The British Retail Consortium (BRC) reported that 56 per cent of retail finance chiefs are pessimistic about trading conditions, following store closures by major retailers due to the chancellor's previous national insurance hike for employers. The warning comes as the government faces increasing pressure to address a significant deficit in public finances, with expectations mounting that tax increases may be necessary. The BRC predicts food inflation could reach 6 per cent by the end of the year, and 85 per cent of chief financial officers have already raised prices, with many also freezing recruitment or reducing job numbers. An HM Treasury spokesperson stated the government is pro-business, focusing on economic growth to strengthen public finances, citing capped corporation tax and trade deals.
Daily Mail
14 hours ago
- Business
- Daily Mail
Food price inflation could rocket to six per cent in the next five months due to Labour's budget, retail experts warn
Food price inflation is set to skyrocket to six percent by the end of year due to Labour's previous budget and could pose 'significant challenges' to households, retail experts have warned. The British Retail Consortium (BRC) has predicted food inflation, which currently sits at four percent, will rise by two percent in the next five months. Over half of retail chiefs, representing over 9,000, told a survey carried out by the industry body that they feel 'pessimistic' about upcoming year, an are expecting more price rises. And most, 85 per cent, blamed price rises on Rachel Reeves ' budget plans, which saw the Chancellor increase employer national insurance and the national living wage in April. The BRC said of the predicted rise in food costs: 'This will pose significant challenges to household budgets, particularly in the run-up to Christmas.' Nearly half of chief financial officers also revealed they had frozen hiring, while 38 percent had lowered the number of in-store jobs, which was further supported by official job figures. In the first quarter of 2025, there were almost 100,000 fewer retail jobs in comparison to the previous year, according to the BRC. And while a third of CFOs confessed they had slashed local community investment, another 15 percent had delayed opening new branches. BRC chief executive Helen Dickinson told The Independent: 'Retail was squarely in the firing line of the last budget, with the industry hit by £7 billion in new costs and taxes. 'Retailers have done everything they can to shield their customers from higher costs, but given their slim margins and the rising cost of employing staff, price rises were inevitable. 'The consequences are now being felt by households as many struggle to cope with the rising cost of their weekly shop. 'It is up to the Chancellor to decide whether to fan the flames of inflation, or to support the everyday economy by backing the high street and the local jobs they provide.' Last January, the industry body anticipated food prices would skyrocket, on average, by 4.2 percent towards the tail end of the year, as retailers grappled with heightened costs as a result of the budget. Ms Dickinson previously said analysis from both industry heads and the trade association suggested there was 'little hope of prices going anywhere but up' due to national living wage and national insurance hikes. Last week, Worldpanel by Numerator, a market research firm previously known as Kantar, said grocery prices were soaring at the fastest rate in the last year and a half. In the four weeks to July 13, food cost inflation rose to 5.2 per cent, up from 4.7 per cent the month prior - the highest since January 2024. Shoppers are predicted to spend £275 more annually on average, according to the market research firm.
