Prices in the United Kingdom shops have reached their highest level since 2005 and have created a sort of crisis where consumers are pressed beyond their means.
According to statistics, the shop-price inflation in the UK was registered at 6.6% during October. Ever since the shop-price inflation index was started around 17 years ago, such high readings have never been recorded! Just last month (September), the inflation was around 5.7% only, which tells us that inflation has increased on a monthly basis.
Furthermore, food price inflation has already touched 11.6%, with milk, sugar, and tea bags experiencing major price hikes. So, in short, the inflation in the UK is at record levels and is actually increasing rather than slowing down.
For an average British shopper, it has become almost possible to avoid inflation as bills are rising across energy, fuel, and food. However, consumers are still utilizing various means to save money by visiting retailers who are offering discounts, and buying low-quality vegetables, canned goods, and frozen food.
It would not be wrong to say that the economic conditions are challenging, which is impacting retail spending and consumer confidence. According to experts, these economic conditions are unprecedented and were not seen for more than a decade.
Rising inflation has already forced consumers to slow down their spending on items which are deemed non-essential. However, food items and other essential items are something that can't be avoided, and that's how inflation is impacting every British consumer.
And this inflation is also affecting British retailers as many big names are also reporting fewer profits and even downsizing. Furthermore, the holiday season of December is fast approaching, but there are still no signs of any respite for the consumers.
Considering the rising supply chain pressures in the UK, it is becoming difficult for even retailers to shoulder the burden. Because at the end of the day, retailers can only do so much and would have to further slash the discounts.