Monday, February 07, 2022

Inflation Fears

 John Allan, the chairman of Britain’s biggest supermarket chain has warned that “the worst is yet to come” on food price inflation, as he predicted it will soon hit 5%.

 He was well aware people on very tight budgets were having to choose between food and heating. He said the idea that this was happening was very troubling.

 Poverty groups have warned about the impending threat to those on the lowest incomes.

“In some ways the worst is still to come – because although food price inflation in Tesco last quarter was only 1%, we are impacted by rising energy prices. Our suppliers are impacted by rising energy prices. We’re doing all we can to offset it … but that’s the sort of number we’re talking about. Of course, 5%,” he said.

Allan said: “I think the combination of increasing energy prices, the impact of national insurance increases on people’s incomes, and to a much much lesser extent increasing food prices, is going to squeeze the hardest-up still harder.”

Tesco chairman warns of food price inflation at 5% by spring | Tesco | The Guardian

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