The British Retail Consortium (BRC) has warned that the conflict in the Middle East is driving up costs across supply chains, which will soon be passed on to shoppers. The group, representing over 200 major retailers, urged the Government to ease pressures from higher National Insurance, packaging levies, new regulations, and business energy charges.
A BRC survey found that 73% of people expect the Iran war to raise prices of non-food items, while 81% are worried about energy bills, 76% about petrol and diesel, and 68% about tax increases. The BRC noted businesses have already absorbed £6.5 billion in extra costs.
Separately, the Food and Drink Federation (FDF), representing 12,000 manufacturers, warned food inflation could reach 9% by the end of 2026. Businesses have also told the Bank of England that UK food inflation could hit 7%.
BRC chief executive Helen Dickinson said: “The Middle East conflict is driving up costs across the supply chain and families are right to be concerned. But not every pressure bearing down on retailers comes from the Gulf. … The UK should be moving in the same direction, not treating global instability as cover for inaction on costs of its own making.”
A Government spokesperson responded: “We are acting to protect people from any potential increases in food prices. We have already suspended select food tariffs and continue to work closely with the sector to keep households bills down.”
