Retailers are facing growing cost pressures and shop prices are likely to rise later in the year, the British Retail Consortium (BRC) has warned.
The latest Shop Price Index from the BRC and NielsenIQ shows that retail prices declined in May, albeit at a slower pace than in April. Clothing and footwear prices fell, while prices of furniture and electricals went up. Competition between the supermarkets kept grocery prices low.
However, cost pressures are building up.
“Global food prices are currently at their highest in seven years, shipping costs have risen threefold since 2019, and commodity prices are climbing,” explained BRC chief executive Helen Dickinson.
“We will likely see these costs filter through in the second half of this year, and with the additional Brexit red-tape this autumn, retailers may be forced to pass on some of these costs onto their customers.”
She called on the UK government to help ease the burden on consumers by finding ways to minimise the impact of new checks and documentation required at EU borders from October.