Food inflation will reach 6% by the end of the year – posing an “important challenge” to household budgets as Christmas approaches, predicted industry leaders.
The British Retail Consortium warns that the Chancellor may “make his inflation flames” if it makes taxes in the upcoming budget.
Despite strong competition on prices between supermarket chains, the BRC sounded the alarm on the rhythm of the price increases of the grocery store.
Since this month, food inflation has increased by 4% over a year – its highest level since February 2024.
The BRC said that this increase is linked to global factors, such as high demand and cultivation struggles.
The prices of beef, chicken and tea are among those who have increased the most this year – but part of the blame is also heard at the Chancellor’s door.
The BRC said it was inevitable that a burden of 7 billion pounds Sterling, thanks to changes to national employers’ insurance contributions and minimum remuneration rules after last October budget, had been partly transmitted to customers in the highest price form.
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Will we see tax increases in the next budget?
He published the results of a survey of the retail industry finance chiefs to illustrate his point – that the nerves of what Ms. Reeves’ second budget could not help companies to invest in a new job or prices.
We have promised that cases would be spared additional pain after being put to the grip for most of the Chancellor’s taxation measures last year.
However, speculation is now riveted on which will feel pain this fall while it juggles a deterioration in public finances.
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Tax Options on wealth
An enlarged black hole is estimated at around 20 billion pounds sterling.
The cost of the public debt service has increased since the last budget, while information on social protection reforms and payment reductions in winter fuel have made its work even more difficult – which makes additional tax measures inevitable.
The survey of financial directors for the BRC showed that the highest current fear of coming concerned the “tax and regulatory burden”.
Two-thirds of financial directors predicted that new price increases during the coming year, at a time when inflation of the head rate remains already blocked above the Bank of England by 2%.
It is currently 3.6%.
Helen Dickinson, Director General of BRC, said: “Retail was squarely in the last budget shooting line, the industry struck by 7 billion pounds sterling in new costs and taxes.
“The retailers have done everything they can to protect their customers from higher costs, but given their thin margins and the increase in the costs of staff employment, the price increases were inevitable.
“The consequences are now felt by households because many have trouble dealing with the increase in the cost of their weekly store.
“It is up to the Chancellor to decide to make flames of inflation or support the daily economy by supporting rue Haute and the local jobs they provide.”
It concluded: “Retail trade represents 5% of the economy, but currently pays 7.4% of commercial taxes and 21% of all commercial prices.
“It is essential that upcoming reforms offer a significant reduction in the retail rate bill and guarantees that no store pays more due to changes.”
The treasure was approached for comments.