Cost-nightmare could get worse

Responding to the latest CPI inflation figures which shows headline inflation at 10.1% and food inflation at 12.6%, Helen Dickinson, Chief Executive of the British Retail Consortium, said:

“Consumers had little respite from the cost of living squeeze as prices rose again in July. Soaring household bills and transport costs remain the biggest headache, holding back discretionary spending across the UK as real incomes continued to fall. Retailers are trying to support their customers by expanding value ranges, fixing prices for some essential goods, offering discounted kids meals, and providing discounts for vulnerable groups. However, the sheer weight of costs bearing down on the industry and its supply chains has been proving impossible to fully absorb.

“With inflation showing little sign of slowing, retailers could face a 10% hike in their business rates bill in the coming year. This would impose a cost-nightmare of hundreds of millions of pounds on retailers who are already struggling with razor-thin margins. The next Prime Minister must act, freezing the multiplier to avoid placing a further burden on retailers, and the customers they serve.”