Prices in UK stores hit 17-year high – media – RT Business News
UK store prices jumped 5.1% year-on-year in August from 4.4% in July, posting their highest rate of growth since 2005, Sky News reported on Wednesday, citing data from the British Retail Consortium (BRC) and research company NielsenIQ. .
According to the report, food prices rose at their fastest rate since 2008 – at 9.3% compared to last year. Fresh food prices rose 10.5% from last August, up from July’s 8% rise, with products such as milk and margarine seeing the biggest price increases.
According to the UK’s Office for National Statistics (ONS), rising food prices are a key driver of inflation, which jumped to 10.1% in July. Some analysts warn that it could exceed 18%, or even 22% next year, if energy prices continue to rise.
According to BRC chief executive Helen Dickinson, the outlook is « grim for both consumers and retailers.« She noted that companies are likely to support customers through »reductions for vulnerable groups, widening of value ranges, pricing of basic necessities and increase in staff salariesbut said that « there’s so much they can take on” amid soaring costs.
UK credit card borrowing soars – Guardian
Mike Watkins, Retailer and Business Intelligence Manager for NielsenIQ, suggested that « this level of food inflation to be with us for at least another six months.
“With further declines in disposable income this fall as energy costs soar again, retail spending will be under pressure in the very important last quarter of the year.”
For more stories on economics and finance, visit RT’s business section
You can share this story on social media: