Responding to the latest CPI inflation figures, which show headline inflation remaining unchanged at 3.8% and food inflation falling to 4.5%, Dr Kris Hamer, Director of Insight at the British Retail Consortium, said:
Headline inflation remained unchanged last month, as an easing of food price rises was countered by an increase in transport inflation, notably air fares. Food inflation is expected to remain high into 2026 as inflationary pressures from the last Budget continue to filter through, something now being seen in the price of clothing and footwear. With the cost of the weekly shop still significantly higher than last year and the prospect of another tax-raising Budget next month, today’s figures are unlikely to raise consumer spirits. Nonetheless, consumers will have been happy to see the price of key staples such as rice, bread and cereal fall on the month.
With the IMF warning that UK inflation will be the highest in the G7, the Chancellor must use the upcoming Budget to tackle rising prices head on. Retailers, already operating on tight margins, have been hit with £7 billion in additional taxes this year alone — costs they simply can’t absorb. The Government must use what levers it has to hold back the rising tide of inflation. Reform of business rates — delivering a meaningful cut for retailers with no shop paying more— would drive and help deliver better value for customers.
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