The British Retail Consortium (BRC) warns of rising food prices in the latter half of 2023 due to increased costs from the recent Budget, including higher National Insurance and National Living Wage. The BRC predicts a 4.2% increase in food prices and a return to inflation for non-food items.
Food prices will rise by an average of 4.2% in the latter half of the year as retailers battle £7 billion of increased costs from the Budget , a retail body has warned. The British Retail Consortium (BRC) said there was 'little hope of prices going anywhere but up' as retailers faced higher national insurance (NI), National Living Wage and new packaging costs as a result of the Budget .
The BRC chief executive Helen Dickinson said 'as retailers battle the £7 billion of increased costs in 2025 from the Budget, including higher employer NI, National Living Wage, and new packaging levies, there is little hope of prices going anywhere but up.'Modelling by the BRC and retail chief financial officers suggest food prices will rise by an average of 4.2% in the latter half of the year, while non-food will return firmly to inflation.'Government can still take steps to mitigate these price pressures, and it must ensure that its proposed reforms to business rates do not result in any stores paying more in rates than they do already.'Read more: School slammed for installing CCTV 'deterrent' in pupil toilets to clamp down on vaping and bullyingRead more: Ministers could bring back retired general to lead UK armed forces amid major reforms and budget threatsThe latest BRC-NielsenIQ Shop Price Index shows shoppers benefited from a December marked by lower inflation than last year and bigger discounts amid warnings both are likely to 'become a thing of the past'.Shop prices overall were 1% lower in December than a year earlier, a deepening of November's 0.6% deflation.Prices of products other than food were 2.4% cheaper in December, the deepest deflation since April 2021, although this was influenced by later Black Friday discounting this year.Food prices overall were unchanged at 1.8% higher than a year ago - the lowest since November 2021 - as was fresh food inflation at 1.2%, although ambient food inflation edged up to 2.8% from 2.7% in November.Ms Dickinson said: 'Retailers discounted heavily for Black Friday this year as they attempted to make up for weaker sales earlier in the year.'However, the later Black Friday timing brought many of the non-food discounts into the measurement period, making non-food prices look more deflationary than the underlying trend.'With food inflation bottoming out at 1.8%, and many price pressures on the horizon, shop price deflation is likely to become a thing of the past.'Mike Watkins, head of retailer and business insight at NielsenIQ, said: 'During December, shoppers benefited from both lower inflation than last year and bigger discounts as both food and non-food retailers were keen to drive sales after a slow start to the quarter.'However, higher household costs are unlikely to dissipate anytime soon so retailers will need to carefully manage any inflationary pressure in the months ahead.'The BRC-NielsenIQ report follows figures from analysts Kantar this week showing inflation across supermarkets jumped from November's 2.6% to 3.7% in December - its highest level since March
Food Prices Inflation Retail Budget British Retail Consortium (BRC) National Living Wage National Insurance
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Food is as Important as the Action: The Changing Landscape of Stadium FoodThis article explores the evolution of food offerings in sports stadiums, highlighting the increasing emphasis on diverse and high-quality options beyond traditional fare. It features the experiences of sports fans and stadium officials, showcasing innovative approaches to food and beverage service.
Read more »
Armthorpe food bank volunteers help bring Christmas to communityArmthorpe Food Support Group give out bumper food parcels at Christmas to tide people through.
Read more »
Inside new Bold Street Thai restaurant in former Jimmy's barMee Japanese and Thai Street Food offers a vibrant Thai street food market atmosphere
Read more »
Seven Food Trends That Make Me Want to ScreamThis article lists seven food trends that the author finds irritating and annoying. These include influencer food recommendations, the overuse of food photography, and the sexualization of food. The author argues that these trends detract from the true enjoyment of food and encourages readers to support real restaurants.
Read more »
Olio App: The Food Sharing Solution Helping Shoppers Save MoneyAs the cost of living rises, an online food sharing app called Olio is gaining popularity for helping people save money on groceries. The app connects users with local 'Food Waste Heroes' who collect surplus food from supermarkets like Tesco, Asda, and Sainsbury's and distribute it for free within their communities. Many users are praising Olio for its effectiveness in reducing food waste and providing affordable food options, especially during challenging times like January.
Read more »
Charities, food banks and homeless shelters to get £15m food redistribution fund to save surplus farm foodThe government estimates that around 330,000 tonnes of edible food a year are wasted or used for animal feed.
Read more »