Overview

• The Bank of England cut its base rate on August 7 as it forecast food inflation rising from 4.5% to 5.5% by year-end.
• The British Retail Consortium cautions that fiscal pressures could elevate food inflation to 6% by Christmas, adding about £290 to the average household’s annual grocery spend.
• Grocery inflation jumped from 2.6% in April to 5.2% in July under mounting labour costs and supply-chain strains driven by extreme weather.
• Supermarkets are reducing headcount and boosting own-label promotions, steering price-sensitive shoppers toward discount chains like Aldi and Lidl.
• A survey of retail finance chiefs found that 85% of stores have already raised prices this year and 42% have imposed hiring freezes to curb expenses.