Food prices ‘not going anywhere but up’, warns retail body
Published On Jan 8, 2025, 7:52 PM
The British Retail Consortium (BRC) forecasts that food prices in the UK will rise significantly due to the upcoming increases in wages and National Insurance taxes, starting in April 2025. They predict food price inflation will escalate from 1.8% to 4.2% in the latter half of the year, affecting various staples like vegetable oil, orange juice, butter, and coffee. As retailers face an estimated £7 billion increase in costs, they will have little choice but to pass these costs onto consumers, leading to higher prices across the board. Companies such as Next have already indicated plans to raise clothing prices to offset wage increases.
Stock Forecasts
COST
Negative
The forecast suggests a concerning trend for food-related stocks and consumer goods, as increased input costs due to wage and tax hikes will likely pressure profit margins and could lead to decreased consumer spending. Companies that are heavily reliant on food products may see their stock prices impacted negatively as they adjust to these cost pressures.
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