Supermarket prices could rise again after inflation drop, experts warn
Why food prices could rise again despite inflation falling
- UK inflation fell to 3 per cent in January, marking its lowest level since March last year and a significant drop from 3.4 per cent in December.
- Food inflation saw a substantial decrease from 4.5 per cent to 3.6 per cent, providing some relief for households struggling with the cost of living.
- Some economists predict that the inflation rate could reach the Bank of England’s 2 per cent target as early as April.
- However, experts warn that this recent drop in inflation may be short-lived due to new pressures on retailers, including rising labour costs and increased regulatory burdens.
- Retailers are currently absorbing higher costs, but thin margins and upcoming government changes, such as minimum wage increases and employer's National Insurance contributions, threaten to push prices back up.
Bookmark popover
Removed from bookmarks