Retailers call for cost-cutting Budget to stem rising inflation
Responding to the latest CPI inflation figures, which show headline inflation rose to 3.5%, and food inflation held steady at 1.3%, Harvir Dhillon, lead economist at the British Retail Consortium, said: “With Christmas around the corner, consumers will be understandably concerned by the third increase in inflation in three months. A large part of this is the sharp rise in petrol and diesel prices. The lifting of the Ofgem price cap this month will push up October’s figure when published in November, having already driven up household energy bills and likely to do so again in January. Rises in the cost of household appliances and pharmaceuticals will further squeeze household budgets. However, intense competition between supermarkets has helped hold inflation steady for consumers despite a multitude of supply chain shocks this year. This stability was anchored by drops in the price of butter, coffee and potatoes, helping to ease the pressure on consumers.
“Retailers and government are aligned on the need to tackle the high cost of living, and next week’s Budget provides a crucial opportunity to do just that. If government can cut the cost of doing business, retailers will be in a better position to hold back price rises and increase investment in stores and jobs. However, today’s figures, which determine April 2027’s business rates uplift, mean retailers are on the line for around £250m in additional bills, unless action is taken. Now is not the time to pile on millions in extra costs, and If the chancellor is serious about reducing the cost of living, he must freeze rates for the year ahead. Cut the costs on businesses and will be families who ultimately benefit.”