Helen Dickinson, CEO of the British Retail Consortium, is in the news as UK retail faces rising costs, shrinking sales, and inflation worries.
The Middle East conflict has pushed up fuel, fertiliser and packaging costs, feeding higher food prices globally. Retailers warn inflation is likely to continue if the war persists, while farmers face rising input costs and potential production cuts.
The government has signalled it is considering voluntary price caps on essential groceries and is offering incentives to supermarkets, including easing packaging rules and delaying healthy-food changes. The moves follow Labour-backed measures and CMA reforms, with ministers saying they want to keep costs down for families amid ongoing inflation and global supply pressures.
UK grocery inflation slowed to 1.1% in February, the lowest in three months, driven by fierce retailer competition and falling global costs. Food inflation decreased to 3.5%, with non-food prices also easing. The Bank of England monitors food prices closely as they influence overall inflation expectations.
Companies warn of rising costs and potential shortages due to the Middle East conflict. McBride and Princes report increased expenses, while UK supermarkets prepare for possible price hikes and supply disruptions, with impacts expected to intensify in the coming months.
Retailers and economists are scrutinising a Treasury idea to cap prices on staples. M&S's Stuart Machin dismisses the concept as preposterous, arguing it could distort markets and hurt supply. Ministers say any plan is not mandatory and will focus on keeping costs down for households amid high inflation.