UK shops

Rise in Price of UK Shops, For the First Time in Five Years


Recent British Retail Consortium (BRC) figures depicted hike in prices of UK’s shops for the first time in five years span, leading to an increase in the cost of fruits and vegetables. The prices rose up by 0.1 percent in August, which means it has entered in the inflationary phase after April 2013.

Witnessing Food inflation of around 2 percent in August, the non-food price deflation alleviated by 1 percent. Consumers are likely to face a food “price shock” in the coming months, as predicted by analysts.

The reason for rising in prices is assumed to be the summer heatwave which has led to an increase in prices of wheat, carrot, and lettuce.

Consumer food prices would be pushed up by 5 percent which means 7 Euros per month per household. Whereas, it will have a major impact on agricultural and oil products.

Chief Executive at BRC, Helen Dickinson, said: “Despite significant increases in costs in the supply chain, this month’s figures show that retailers are keeping price increases faced by consumers to a minimum.”

READ  Hyundai Opens World’s First Car-Powered Hotel

He added, “However, current inflationary pressures pale in comparison to potential increases in costs retailers will face in the event we leave the EU without a deal. If that does happen retailers will not be able to shield consumers from price increases.”