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British households are facing a more expensive Christmas shop after labour shortages and surging costs pushed retail prices higher for the first time since May 2019, according to industry figures.
The British Retail Consortium (BRC) shop price index showed a rise of 0.3% in November compared to the same month last year.
It follows a decrease of 0.4% recorded in October, ending a two and a half year period in which prices have been falling year-on-year.
Now, with globally-sourced commodities and shipping becoming more expensive and lorry drivers and food processing workers harder to find, building cost pressures on businesses are starting to be passed on.
It adds to the burgeoning inflation headache facing households as energy bills and fuel costs rise while tax rises and possible interest rate hikes loom on the horizon.
BRC chief executive Helen Dickinson said: “The impact of labour shortages, rising commodity prices and transportation costs have now very clearly taken their hold on consumer prices.”
The BRC’s index showed prices for non-food products still falling – by 0.1% – in November though this was the slowest decline since May 2019, and down sharply from 1% the month before.
Meanwhile food inflation, which accelerated to 1.1% from 0.5% in October, was the highest since November last year.
Within this, fresh food prices were up 1.2% year-on-year, up from 0.3% a month before, which was the sharpest increase since August 2019.
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The ONS reports a sharp rise in the cost of living which the Bank of England says will hit this winter as goods and services leap in…
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Source : skynews
