Chancellor must act to stem rising inflation
Responding to the latest CPI inflation figures, which show headline inflation rose to 2.9% and food inflation remained unchanged at 1.3%, Harvir Dhillon, lead economist at the British Retail Consortium, said: “Today’s figures highlight the challenging environment retailers face. Headline inflation has increased, with goods such as clothing and accessories seeing marked increases on the month. One bright spot for households was that food inflation remained unchanged, with deals to be had on staple items like olive oil and coffee. By working to offer the most competitive prices, supermarkets have managed to shield their customers from the worst of the cost pressures feeding through the supply chain.
“Tackling the cost of living is a top priority and retailers continue to do all they can to hold prices down. But until fiscal conditions improve, they will be fighting with one hand tied behind their back. The Autumn Budget is a chance to reset and reduce the cost pressures building up across the industry. Business Rates are perhaps the most significant of these, with retailers paying a disproportionate share of the total rates bill. Rising inflation means that businesses will expect their rates bill to rise even faster in April, adding to the cost pressures already being felt from high energy bills, employment costs, and packaging fees. The Chancellor can take meaningful action to mitigate these costs, using the Budget to announce a freeze to business rates. Halting the rise in these costs is the best way to support retailers, and by extension, the households who depend on them.”