British households are facing more expensive Christmas shopping after labor shortages and soaring costs pushed retail prices up for the first time since May 2019, according to industry figures .
The British Retail Consortium (BRC) store price index showed a 0.3 per cent increase in November compared with the same month last year.
It follows a 0.4% drop recorded in October, ending a two-and-a-half year period in which prices fell year-on-year.
Now, with items sourced globally and shipping becoming more and more expensive and truck drivers and food handlers harder to find, cost pressures build on businesses. industry is starting to increase.
It adds to the growing inflationary headache that households face as energy bills and fuel costs rise while tax increases and potentially high interest rates are imminent.
BRC chief executive Helen Dickinson said: “The impact of labor shortages, rising commodity prices and transportation costs is already having a very clear effect on consumer prices.”
The BRC’s index showed prices of non-food products still fell – 0.1% – in November although this was the slowest drop since May 2019 and a sharp drop from 1% the previous month.
Meanwhile, food inflation, which rose to 1.1% from 0.5% in October, was the highest since November last year.
During this time, fresh food prices rose 1.2% year-on-year, up from 0.3% a month earlier, the strongest increase since August 2019.
“With food prices rising, and especially fresh food… we could see some of our Christmas shopping get a little more expensive this year,” Ms. Dickinson said.
She also points to a rise in global food costs, with staples like vegetables doubling in price in two years.
Ms Dickinson added: “With ongoing labor shortages across the entire supply chain set to continue for some time and with no indication that rising freight and freight costs will subside, we inflation rate is expected to increase rapidly in the coming months.”
“Retailers are doing all they can to minimize the impact for their customers.
“The government must also play its part and work with industry to find lasting solutions to the labor shortage as this will help ease cost pressures and protect public pockets.” the UK, who are already facing rising costs.”
The shopping price index reading for November comes after the consumer price index (CPI), the official inflation gauge, rose to a 10-year high of 4.2% in October.
The CPI, which includes household costs such as energy and fuel as well as shopping prices, is forecast by the Bank of England to hit 5% in the coming months.
A survey released by the CBI last week found that retailers increased prices at the fastest rate since 1990, with clothing and department stores exhibiting large volatility.
The retail sector has had a recent uptick in sales, with official figures showing a rebound in October after a five-month decline – partly due to consumers shopping for Christmas presents early out of fear. Supply chain issues affecting availability.
