Retailers are facing mounting pressure as shop price inflation hits its highest level in over two years, signaling that businesses are now struggling to absorb soaring costs. The British Retail Consortium warns that the "dam is starting to break," suggesting retailers may soon pass on increased expenses—particularly from energy and food ingredients—directly to consumers. With inflation jumping from 1.4% in September to 2.1% in October, the trend marks a shift after months of attempts to shield shoppers from rising costs. The rise coincides with the escalation of the Middle East conflict, which has disrupted global supply chains and driven up input prices.
British Retail Consortium says ‘dam is starting to break on the huge wave of costs’ being kept from consumersShop price inflation has risen to the highest level in two and a half years, according to the British Retail Consortium, which warned that “the dam is starting to break” when it comes to retailers trying to limit price rises for customers.The lobby group said shop price inflation was 2.1% year on year in October, a sharp rise compared with 1.4% in September, and an indication that retailers were beginning to pass on the rising costs of energy and food ingredients since the Middle East conflict broke out. Continue reading...
