Price rise is 'inevitable', warns leading supermarket boss

British supermarket chain Iceland’s top executive has warned that price rise in the coming times is “inevitable”, stated recent reports, as acute shortage of heavy goods vehicle (HGV) drivers in the UK continue to disrupt the supply chain.

Richard Walker, managing director of Iceland, explained how companies are increasing the wages of lorry drivers to entice more workers back on the road.

Combination of this and other factors will lead to price inflation, with consumers paying more for goods on shelves, Walker said.

“I think inevitably it will lead to some form of inflation because this driver issue is affecting the whole supply chain,” Walker said on Sky News, adding the problem has multiplied its form.

"It's not just affecting our part of it, which is from the depots to the shops. It's also affecting the suppliers into the depots or the produce from the fields into the supplier,” he said.

The comments from Walker come just days after he warned UK government last month how ongoing delivery issues may effectively "cancel" Christmas this year, if immigration rules for recruitment of HGV drivers from abroad are not relaxed with immediate effect.

The HGV driver shortage had caused cancelled orders for fast-moving food products such as bread at about 100 Iceland stores, and deliveries of soft drinks had fallen 50 per cent by volume, he said at the time.

Supermarkets including Tesco and Asda have reportedly introduced a £1,000 starting bonus for new recruits of HGV drivers while M&S is advertising a £2,000 incentive. Waitrose, meanwhile, this week started offering a salary of up to £53,000 for new lorry drivers, reports said.