Responding to the latest CPI inflation
figures, which show headline inflation rising to 3.3% and food
inflation rising to 3.7%, Harvir Dhillon, Economist at the
British Retail Consortium, said:
“The first signs of inflationary pressure stemming from the
conflict in the Middle East began to emerge last month, driven
largely by rising fuel prices. Across retail, the picture was
mixed. Intense competition pushed clothing and footwear back into
deflation, but in the grocery sector, mounting cost pressures saw
food inflation creep up. Ahead, if food prices follow a similar
trend as seen following the Ukraine-Russia conflict, prices will
start to ramp up more notably throughout 2026.
“Although the energy price cap and removal of green levies may
provide some near-term relief, inflation will rise over the
coming quarters as the full impact of the Middle East conflict
filters through. As a more energy intensive sector, supermarkets
and their supply chains are likely to be disproportionately
affected. With food prices set to rise, it is lower income
households that will be hit hardest. Government must target
support towards these retailers, in particular looking at
non-commodity charges which push up the cost of businesses'
energy bills. This will help mitigate the peak in food inflation,
reducing the squeeze on households.”
-ENDS-
Notes:
-
ONS Consumer Price Index figures
|
Year on Year changes
|
Feb-26
|
Mar-26
|
|
CPI (overall index)
|
3.0%
|
3.3%
|
|
01 Food and non-alcoholic beverages
|
3.3%
|
3.7%
|
|
02 Alcoholic beverages and tobacco
|
3.6%
|
3.3%
|
|
03 Clothing and footwear
|
0.9%
|
-0.8%
|
|
04 Housing, water, electricity, gas and
other fuels
|
4.6%
|
5.3%
|
|
05 Furniture, household equipment and
maintenance
|
0.1%
|
-0.4%
|
|
06 Health
|
3.1%
|
3.1%
|
|
07 Transport
|
2.4%
|
4.7%
|
|
08 Communication
|
4.3%
|
4.1%
|
|
09 Recreation and culture
|
2.5%
|
2.8%
|
|
10 Education
|
5.1%
|
5.1%
|
|
11 Restaurants and hotels
|
4.0%
|
4.0%
|
|
12 Miscellaneous goods and services
|
2.6%
|
2.5%
|
