The cost of shopping in the UK continues to rise, with beauty products being a major contributing factor. According to the BRC-Nielsen Shop Price Index, store prices increased by 1.8% last month, the highest figure since November 2011. Non-food prices saw a rise of 1.3%, compared to a 0.9% increase in January and a 0.2% decrease in December. This inflation is largely driven by the prices of cosmetics and other non-food items.
Inflation in the UK as a whole is currently above 5% and expected to exceed 7% in the coming months. As a result, many consumers are likely to cut back on non-essential spending due to rising costs of essential items like food, mortgages, and petrol. The CEO of the BRC, Helen Dickinson, acknowledged the difficulties this poses for households, especially considering additional factors such as the rise in national insurance and energy price caps, which reduce disposable income.
Retailers are facing pressure from multiple sources, including higher shipping rates that have nearly doubled in the past year due to increased crude oil prices. Labour shortages, higher commodity prices, and rising energy costs are also contributing to the challenges retailers face. Despite these obstacles, retailers are striving to mitigate price increases and support their customers. Many supermarkets have expanded their value ranges for food, offering more affordable options. However, there are limits to how much retailers can absorb these costs.
Useful Links:
– BRC – Industry Abandoned to Inflation
– Reuters – UK shop prices have risen
