Indicators
UK Food Inflation to Hit 6% by Christmas, Retailers Warn Reeves
Food inflation hit a 16-month high of 4.4% in June, with the price of beef, ready meals and staples such as butter and milk rising strongly in recent months.
Photographer: Hollie Adams/BloombergBritish retailers warned food inflation will hit 6% by the end of the year as they raise prices in response to April’s hike in payroll taxes and the minimum wage.
A survey by the British Retail Consortium found two-thirds of firms plan to increase prices further after being squeezed by the Labour government at its first budget. Some 85% said they have already responded by putting up costs for consumers.