According to the latest data from the British Retail Association, UK store prices rose last month, indicating that the shortage of drivers and the red tape caused by Brexit are beginning to impact household budgets.
The latest data from BRC and research group NielsenIQ show that the month-on-month increase was 0.4% in August. This was driven by a 0.6% increase in non-food prices, including a sharp increase in the cost of electronic products due to the shortage of microchips and shipping issues.
Although UK store prices are still below 2020 levels, and they fell by 0.8% in August compared to the same period last year, this marks the beginning of a slowdown in deflation from the 1.2% year-on-year decline in July.
Helen Dickinson, CEO of BRC, which represents hundreds of retail companies, said: “There are some mild signs that rising costs are beginning to seep into product prices.”
“Food retailers are trying to reduce prices as much as possible. But the increasing pressure from rising commodity and transportation costs and the red tape associated with Brexit means that this situation will not last long. Monthly food prices may rise.
“So far, interference has been limited, but on Christmas Eve, the situation may get worse, and customers may see a reduction in their favorite products and gifts, and prices increase.”
The BRC warning was issued after the toy retailer The Entertainer said The price may increase by 10% Due to supply chain disruptions, labor shortages and rising transportation costs, more than 18 months.The grocery chain Iceland also said that the supply of truck drivers may be insufficient. Ruined christmas.
Dickinson called on the government to increase the number of HGV driving tests, change the rules for driver training funds, and provide temporary visas for EU drivers to help alleviate the shortage of personnel that caused shelf vacancies.
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“If the government does not take action, it will be British consumers who will pay the price,” she said.
The signs of rising prices in the UK came at a time when the inflation rate in the entire Eurozone soared to its highest level in a decade, and the rising costs of energy, goods and services hit household spending.
The statistical agency Eurostat estimates that the euro zone’s annual inflation rate in August is expected to be 3%, higher than the 2.2% in July. This is the highest level since 2011, as the inflation rate is significantly higher than the European Central Bank’s 2% target.
Energy prices have the greatest impact on the cost of living, rising 15.4% year-on-year in August. But other prices have also risen. The cost of non-energy industrial products is 2.7% higher than a year ago, indicating that rising raw material prices are affecting consumers. Food, alcohol and tobacco prices rose 2%, while service costs rose 1.1% from a year ago.
