Shoppers wearing protective face coverings to combat the spread of the coronavirus, walk along Oxford Street in central London Photograph:( AFP )
According to the Guardian, the costs of Brexit-induced red tape is also fuelling inflation as household budgets start to feel the sting
Retail prices in Britain have shot up owing to a national shortage of lorry drivers and disruption to the global supply chain caused by the Covid pandemic, according to the latest data from the British Retail Consortium (BRC).
According to the Guardian, the costs of Brexit-induced red tape is also fuelling inflation as household budgets start to feel the sting.
The latest figures from the BRC reveal a 0.4 per cent month-on-month rise in August, driven by a 0.6 per cent rise in non-food prices, which includes a sharp spike in the cost of electrical goods caused by shortages of micro-chips and shipping problems.
“There are some modest indications that rising costs are starting to filter through into product prices,” Helen Dickinson, the chief executive of the BRC, which represents hundreds of retail businesses, told the Guardian.
“Food retailers are fighting to keep their prices down as far as possible. But mounting pressures – from rising commodity and shipping costs as well as Brexit-related red tape, mean this will not be sustainable for much longer, and food price rises are likely in the coming months,” he added.
The BRC’s warning comes after the toy retailer The Entertainer said prices could rise by 10 per cent over 18 months because of supply chain disruption, labour shortages and higher transport costs.
The indications of rising prices surface in the UK as inflation across the eurozone surged to its highest level in a decade with mounting costs of energy, goods and services hitting household spending.
The statistics body Eurostat has estimated that euro area annual inflation is expected to be 3 per cent in August, up from 2.2 per cent in July.
(With inputs from agencies)