Warnings of food shortages continues – price hikes on the cards: BRC
UK shop prices rose 0.4% in August, according to the British Retail Consortium, in a sign that driver shortages and Brexit-induced red tape are beginning to hit household budgets. Helen Dickinson, the chief executive of the BRC, said: “Food retailers are fighting to keep their prices down as far as possible. But mounting pressures – from rising commodity and shipping costs as well as Brexit-related red tape, mean this will not be sustainable for much longer, and food price rises are likely in the coming months.”
There was a 0.6% rise in non-food prices, including a sharp increase in the cost of electrical goods caused by shortages of microchips and shipping problems. The indications of rising prices in the UK come as inflation across the eurozone surged to its highest level in a decade, with mounting costs of energy, goods and services hitting household spending.
Labour shortages are also a huge issue – with up to 500,000 processing jobs vacant.