#food-inflation

#food-inflation

Following last year's Budget, where retailers were hit with £5 billion in extra employment costs due to higher employer National Insurance and rising National Living Wages, the industry has been left with little room to absorb additional costs. With EPR set to cost industry billions, this new tax will be yet another inflationary pressure, at a time when food prices are already rising fast, with The Bank of England estimating that the policy alone will add 0.5% to food inflation.

"It was crazy but pretty cool," said co-owner Jim Angelopoulos. "It's nice to see a long line around the block."

According to the British Retail Consortium (BRC)-NIQ Shop Price Monitor, food prices have soared to their highest pace in 18-months as the price of eggs, butter and chocolate surges, this is the highest seen since February 2024. The rapid acceleration in price hikes will "add pressure" to households who are already struggling to make ends meet. In the month food inflation jumped to 4.1% as dairy prices are rising which is up from 3.2% in July.