U.K. grocery CEOs and retail groups warn that Britons’ food costs will increase as retailers face increasing inflation and labor rates.
Food manufacturers and retailers are still evaluating the impact of the 10 percent U.S. tariffs on U.K. goods, but said inflation is a likely result. The U.K. Government has launched a consultation asking U.K. businesses to comment on options, including retaliatory action – and which commodities should have retaliatory tariffs.
Iceland Foods CEO Tarsem Dhaliwal is the latest executive to warn that supermarket prices are likely to increase this year, thanks to higher labor rates grocers are facing from the UK Autumn Budget.
Dhaliwal said he expects food inflation to hike up 4 percent this year, while the British Retail Consortium (BRC) projects inflation will soar 5 percent.
“Retail operates on tight margins and it would be impossible to absorb all GBP 5 billion (USD 7.8 billion, EUR 5.8 billion) of new costs which hit the industry in April,” BRC Director of Insight Kris Hamer said.
The cost of employing people into entry-level jobs surged 10 percent, and the cost of employing people into part-time jobs rose 13 percent, the BRC said...
