BoE confirms last Budget pushing up food inflation, says British Retail Consortium

Responding to the Bank of England's comments on food inflation, Helen Dickinson, Chief Executive at the British Retail Consortium, said:

“The Bank of England report outlines how the last Budget continues to push up food prices. Government policy will add £7bn to retailer costs this year, from higher employment costs to the introduction of a new packaging tax. Food prices have already been climbing steadily, and the BRC has warned this is only the beginning. If the Autumn Budget once again lands on the shoulders of retailers, then it will only serve to fan the flames of food inflation – with poorer families being hit the hardest by the Treasury's decisions.

“While retailers are doing everything they can to shield their customers from rising prices, their ability to absorb further costs is extremely limited. If Government goes ahead with its planned higher business rates threshold for 4,000 larger stores – including many supermarkets – then it will be ordinary households who suffer the most.” 

-ENDS-

MPC Report: August 2025

Box E: “Furthermore, overall labour costs of supermarkets are likely to have been disproportionately affected by the lower threshold at which employers start paying NICs, in part because a relatively high proportion of supermarket staff is employed part-time.”