Latest news with #BritishRetailConsortium
Daily Mirror
9 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
STV News
14 hours ago
- Business
- STV News
Food inflation will rise to 6% by the end of the year, industry predicts
Food inflation will rise to 6% by the end of the year in a 'significant challenge' to household budgets in the run-up to Christmas, industry leaders have predicted. Retailers warned of rising prices and job losses if the Chancellor hiked taxes in the next budget, with two thirds of chief financial officers expecting further price rises, the British Retail Consortium (BRC) said. Some 56% of retail finance chiefs – representing more than 9,000 stores – are 'pessimistic' about trading conditions over the next 12 months, a survey by the BRC found. Some 85% said their businesses had been forced to raise prices as a consequence of the last budget's raising of employer national insurance and the national living wage, while two thirds (65%) predicted further rises in the coming year. The BRC, whose figures now put food inflation at 4%, said prices would reach 6% higher year on year by Christmas. It said: 'This will pose significant challenges to household budgets, particularly in the run-up to Christmas.' Other than cost increases, 42% of chief financial officers said they had frozen recruitment, while 38% said they had reduced job numbers in-store. This was reflected in the official job figures, with almost 100,000 fewer retail jobs in the first quarter of 2025 compared to the previous year, the BRC said. More than a third of CFOs (38%) said they had cut investment in local communities, while 15% had already delayed opening new stores. 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.' 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 budget. At the time, Ms Dickinson said modelling by the trade association and industry chiefs suggested there was 'little hope of prices going anywhere but up' as retailers faced higher national insurance (NI), national living wage and new packaging costs. Last week, market research firm Worldpanel by Numerator, formerly Kantar, reported UK grocery prices had increased at their fastest pace for 18 months amid growing concern from shoppers about the rising cost of living. 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 indicated that rising prices are set to add an average of £275 to shoppers' annual grocery spending. Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country
Bloomberg
18 hours ago
- Business
- Bloomberg
UK Food Inflation to Hit 6% by Christmas, Retailers Warn Reeves
British retailers warned food inflation will hit 6% by the end of the year as they raise prices in response to April's hike in payroll taxes and the minimum wage. A survey by the British Retail Consortium found two-thirds of firms plan to increase prices further after being squeezed by the Labour government at its first budget. Some 85% said they have already responded by putting up costs for consumers.
South Wales Guardian
21 hours ago
- Business
- South Wales Guardian
Food inflation will rise to 6% by the end of the year, industry predicts
Retailers warned of rising prices and job losses if the Chancellor hiked taxes in the next budget, with two thirds of chief financial officers expecting further price rises, the British Retail Consortium (BRC) said. Some 56% of retail finance chiefs – representing more than 9,000 stores – are 'pessimistic' about trading conditions over the next 12 months, a survey by the BRC found. Some 85% said their businesses had been forced to raise prices as a consequence of the last budget's raising of employer national insurance and the national living wage, while two thirds (65%) predicted further rises in the coming year. The BRC, whose figures now put food inflation at 4%, said prices would reach 6% higher year on year by Christmas. It said: 'This will pose significant challenges to household budgets, particularly in the run-up to Christmas.' Other than cost increases, 42% of chief financial officers said they had frozen recruitment, while 38% said they had reduced job numbers in-store. This was reflected in the official job figures, with almost 100,000 fewer retail jobs in the first quarter of 2025 compared to the previous year, the BRC said. More than a third of CFOs (38%) said they had cut investment in local communities, while 15% had already delayed opening new stores. 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.' 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 budget. At the time, Ms Dickinson said modelling by the trade association and industry chiefs suggested there was 'little hope of prices going anywhere but up' as retailers faced higher national insurance (NI), national living wage and new packaging costs. Last week, market research firm Worldpanel by Numerator, formerly Kantar, reported UK grocery prices had increased at their fastest pace for 18 months amid growing concern from shoppers about the rising cost of living. 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 indicated that rising prices are set to add an average of £275 to shoppers' annual grocery spending.
South Wales Argus
21 hours ago
- Business
- South Wales Argus
Food inflation will rise to 6% by the end of the year, industry predicts
Retailers warned of rising prices and job losses if the Chancellor hiked taxes in the next budget, with two thirds of chief financial officers expecting further price rises, the British Retail Consortium (BRC) said. Some 56% of retail finance chiefs – representing more than 9,000 stores – are 'pessimistic' about trading conditions over the next 12 months, a survey by the BRC found. Some 85% said their businesses had been forced to raise prices as a consequence of the last budget's raising of employer national insurance and the national living wage, while two thirds (65%) predicted further rises in the coming year. The BRC, whose figures now put food inflation at 4%, said prices would reach 6% higher year on year by Christmas. It said: 'This will pose significant challenges to household budgets, particularly in the run-up to Christmas.' Other than cost increases, 42% of chief financial officers said they had frozen recruitment, while 38% said they had reduced job numbers in-store. This was reflected in the official job figures, with almost 100,000 fewer retail jobs in the first quarter of 2025 compared to the previous year, the BRC said. More than a third of CFOs (38%) said they had cut investment in local communities, while 15% had already delayed opening new stores. 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.' 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 budget. At the time, Ms Dickinson said modelling by the trade association and industry chiefs suggested there was 'little hope of prices going anywhere but up' as retailers faced higher national insurance (NI), national living wage and new packaging costs. Last week, market research firm Worldpanel by Numerator, formerly Kantar, reported UK grocery prices had increased at their fastest pace for 18 months amid growing concern from shoppers about the rising cost of living. 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 indicated that rising prices are set to add an average of £275 to shoppers' annual grocery spending.
