Reeves Taxes Blamed for Four-Month Surge in Food Prices – Guido Fawkes

Reeves Taxes Blamed for Four-Month Surge in Food Prices

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The embattled Chancellor faces more bad news this morning as fresh figures from the British Retail Consortium (BRC) and NielsenIQ reveal that food inflation is accelerating for the fourth month in a row as shops pass on the costs from Reeves’ tax raid to consumers. Food price inflation rose to 2.8% in May, up from 2.6% in April. Reeves is getting the blame for the surging prices with BRC’s CEO Helen Dickinson saying:

“With retailers now absorbing the additional £5 billion in costs from April’s increased employer National Insurance contributions (NICs) and National Living Wage, it is no surprise that inflation is rearing its head once again. Later this year, retailers face another £2 billion in costs from the new packaging tax, and there are further employment costs on the horizon from the implementation of the Employment Rights Bill.”

Meanwhile overall inflation rose to 3.5% in April – its highest level in over a year. Prospects are cooling for rate cuts on Threadneedle Street…