UK retail prices begin rising due to government budget
(MENAFN) Shop prices in the UK are expected to begin increasing again this year as businesses look to address the additional costs imposed by the government’s Budget.
Projections from the British Retail Consortium (BRC) and industry leaders predict food prices will rise by an average of 4.2 percent in the latter half of 2025.
Non-food prices are also set to increase, after having been in deflation since April, according to the business group.
“As retailers face £7bn in increased costs for 2025 due to the Budget, including higher employer National Insurance, the National Living Wage, and new packaging levies, there is little chance of prices decreasing,” stated Helen Dickinson, CEO of the BRC.
The BRC’s warning follows research from Grant Thornton, which indicated that 54 percent of businesses are considering price hikes in response to the Budget.
Additionally, analysis by Kantar, released earlier this week, revealed that inflation in UK supermarkets surged to 3.7 percent in December, its highest level since March.
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