Retailers Warn About Rising Food Prices

• Taxes could lead to a rise in food product prices by 6% by the end of the year.
• Most retailers have already raised prices due to new expenses.
• The reduction of jobs in retail continues due to economic challenges.

Major retail chains in Great Britain warn that the increase in taxes in the budget this fall could lead to rising prices in stores, which would affect household budgets. According to data from the British Retail Consortium (BRC), two-thirds of financial directors expect further price increases, even as the new budget is being drafted.

Recent surveys show that 85% of retailers have already raised prices due to new expenses related to the increase in national insurance contributions.

BRC's General Director Helen Dickinson noted that new tax increases could force retailers to raise prices again, leaving many households in a precarious financial situation.

Inflation of food product prices has already increased to 4%, and by the end of the year, it is expected to reach 6%. This could create serious difficulties for household budgets, especially in the upcoming holidays.

42% of financial directors indicated that they have frozen hiring new employees, and 38% have reduced the number of employees. According to BRC data, in the first quarter of 2025, the number of jobs in retail is expected to decrease by 100,000 compared to last year.

Dickinson emphasized that retailers have already done everything possible to protect their clients from rising costs. However, given the low margins and increasing expenses for maintaining personnel, price increases have become inevitable.

Tags: Europe/Economy