According to industry statistics, UK households are facing more expensive Christmas shops after labor shortages and soaring costs have pushed retail prices up for the first time since May 2019.
The UK Retail Consortium (BRC) over-the-counter price index showed a 0.3% increase in November compared to the same month last year.
Following the 0.4% decline recorded in October, the two-and-a-half-year period of year-on-year declines will end.
Building cost pressures on companies are beginning to be transmitted as globally procured goods and transportation become more expensive and truck drivers and food processing workers are harder to find.
Inflation headaches facing households are skyrocketing as energy and fuel costs rise, while taxes rise and interest rates are likely to rise.
Helen Dickinson, BRC Chief Executive Officer, said:
The BRC index shows that non-food prices are still down 0.1% in November, the slowest fall since May 2019, a sharp drop from 1% last month. bottom.
Meanwhile, food inflation accelerated from 0.5% in October to 1.1%, the highest since November last year.
Among them, the price of fresh food increased by 1.2% from the same month of the previous year, the sharp increase since August 2019 from 0.3% in the previous month.
“Food prices, especially fresh food, are rising, so some of this year’s Christmas shopping could be a little higher,” Dickinson said.
She also pointed out that global food costs are rising as staple foods such as vegetables double in price over two years.
“Inflation is expected to accelerate in the coming months, as continued labor shortages across the supply chain are expected to continue for some time and there are no signs that rising transportation and commodity costs will subside,” Dickinson said. I added.
“Retailers are doing everything they can to mitigate the impact on their customers.
“The government also needs to play that role and work with the industry to find long-term solutions to labor shortages, which eases cost pressure and pockets the British people who are already facing rising costs. Helps to protect. “
November’s over-the-counter price index measurements are after the official Consumer Price Index (CPI) inflation index rose to 4.2%, the highest in 10 years, in October.
The Bank of England predicts that the CPI, which covers household costs such as energy and fuel and store prices, will reach 5% in the coming months.
Retailers are rising at the fastest pace since 1990, and clothing stores and department stores are volatile, according to a survey released last week by the CBI.
The retail sector has recently seen a turnaround in sales, with official figures showing a recovery in October after a five-month decline. This is partly due to consumers who shop early for Christmas gifts for fear of supply chain issues becoming available.
Consumers face a more expensive Christmas as retailers begin to convey cost pressure
https://bmmagazine.co.uk/news/consumers-face-more-expensive-christmas-as-retailers-start-to-pass-on-cost-pressures/ Consumers face a more expensive Christmas as retailers begin to convey cost pressure