UK: Inflation rises despite discounting in fashion sector

Inflation in the UK rose to 0.7 percent year-on-year in July, largely driven by increased prices among food.

While non-food inflation rose to -1.0 percent, against a decline of -1.2 percent in June, food inflation rose to 4 percent YoY, according to new figures by the British Retail Consortium (BRC).

The increase comes despite discounting in fashion and furniture, which chief executive of the BRC, Helen Dickinson, said had offered “consumers a chance to refresh their wardrobe and homes”.

“Families will have seen their food bills increase as food price inflation rose for the sixth consecutive month,” Dickinson noted.

When looking ahead, the BRC head added: “If the government wants to support struggling families, it must think carefully about the next Budget. Retailers are doing everything possible to protect their customers from the worst of the inflationary pressures, but the seven billion pound cost to retail of last year’s Budget forced most retailers to raise prices.

“Further tax rises will ultimately hurt households, locking in inflation and forcing people to pay higher prices to put food on the table.”