Skip to content
Search
AI Powered
Latest Stories

Worst of rising food prices 'yet to come', warns Tesco boss

Worst of rising food prices 'yet to come', warns Tesco boss
(Photo by DANIEL LEAL/AFP via Getty Images)
AFP via Getty Images

The worst of rising food prices is "yet to come" with a potential 5 percent surge in spring, stated recent reports citing chairman of Tesco.

Tesco Chairman John Allan said food prices in the supermarket giant’s rose only 1 percent last quarter but are likely to be rising by 5 percent by the Spring.


He admitted some people will “of course” have less to spend on luxuries, as it comes at the same time as a National Insurance hike and a £693 rise in the average family’s annual energy bill, to £1,971.

"Food is a relatively small part of household spending, it's only about 9 percent, that figure has halved in the last half century," Allan said, speaking on the BBC's Sunday Morning programme.

"But of course, it's a bigger proportion for those on the lowest incomes," he added.

"And in some ways, the worst is still to come because although food price inflation in Tesco over the last quarter was only 1 percent, we are impacted by rising energy prices; our suppliers are impacted by rising energy prices.

"So the likelihood is that that inflation trigger will rise but we're doing all we can to offset it."

"I predicted last autumn that food prices by the spring might be rising about 5 percent.

"I sincerely believe that it's not going to be any more than that, it might even be slightly less, but that’s the sort of number we’re talking about.

"But of course 5 percent, if you're spending – as some of the least well-off families are spending – 15 percent of your household income, is significant.”

Allan, however, insisted the supermarket chain brings down prices where it can with the cheapest tin of beans now 22p, down from 25p five years ago.

Allan’s statement came as business secretary Kwasi Kwarteng ruled out to Sky News the prospect of the government cutting VAT on energy bills to provide further support as the cost of living continues to rise.

More for you

C-store body warns of 'inflation-busting increase in wage costs'
Woman Holding British Pound
Getty Images/iStockphoto

C-store body warns of 'inflation-busting increase in wage costs'

Convenience store body Association of Convenience Stores (ACS) today (30) has warned the Chancellor about the negative effects of the new National Living Wage (NLW) increase, a day after the Chancellor announced a pay rise for over 3 million workers next year, with NLW rates rising by 6.7 perc cent.

From April 2025, the NLW will increase from £11.44 to £12.21 while 18-20 National Minimum Wage will rise by £1.40 per hour to £10 - the largest increase on record, marking the first step towards a single adult rate.

Keep ReadingShow less
Bacup Wine and Convenience shop, 34 Burnley Road, Bacup.

Bacup Wine and Convenience shop, 34 Burnley Road, Bacup.

Robbie MacDonald via LDRS

Shop’s licence bid rejected over illegal vapes and ‘no regard’ for children’s safety

A Rossendale shop has had a licence bid rejected after repeatedly selling vapes to children and having illegal products on its premises.

Management at the Ibra Superstore at 34 Burnley Road, Bacup, have shown ‘no regard’ for children’s protection and safety, and have insufficient controls for licensing, Rossendale councillors have ruled.

Keep ReadingShow less
SPAR retailer hits target to secure £100,000 free stock from James Hall

SPAR retailer hits target to secure £100,000 free stock from James Hall

SPAR North of England retailer Dara Singh Randhawa’s family store has been awarded £100,000 of free stock after hitting all his targets since moving to the symbol.

Dara and his family, who have their SPAR store in Patrington in the East Riding of Yorkshire, joined SPAR through its association with James Hall & Co. Ltd in August 2023 having taken the decision to maximise the store’s potential.

Keep ReadingShow less
Pound Sterling bank notes
iStock

National Living Wage to increase to £12.21 in April 2025

The government has on Wednesday announced its acceptance of the Low Pay Commission’s (LPC) recommendations on the rates of the National Minimum Wage (NMW), including the National Living Wage (NLW).

The rates which will apply from 1 April 2025 are as follows:

Keep ReadingShow less
National President Mo Razzaq 2024 serious 1 1
Fed National President Mo Razzaq

Indies: It’s criminal police and government turn blind eye to shoplifting

Independent retailers are demanding tougher police action, more bobbies on the beat and harsher punishments as shoplifting levels reach an all-time high, a new survey reveals.

A whopping ninety-one per cent of respondents to a survey conducted by the Federation of Independent Retailers (the Fed) called for more police patrols on streets, while a similar number - 90 per cent - said that shoplifters should be handed harsher sentences.

Seven out of 10 respondents (72 per cent) said their stores had experienced shoplifting, break ins and damage to property, while they and their staff had been physically or verbally threatened.

Just under half of respondents (47 per cent) said they and their employees had been threatened or had suffered abuse and violence when asking for proof of age ahead of selling an age-restricted product.

Forty-four per cent reported that they and their staff had faced abuse or violence because they had refused to make a proxy sale – selling an age restricted product to a customer buying for a minor.

The results of the Fed’s survey came as new figures from the Office of National Statistics revealed that shoplifting was at a record high, with almost half a million offences recorded last year.

According to the ONS, 469,788 offences were logged by forces in the year to June 2024 – a 29 per cent increase on the previous 12 months.

The ONS added that this figure was the highest since records began – in March 2003.

“Inadequate responses from the police and a slap on the wrist for offenders means that shoplifting is soaring, and offenders are becoming more aggressive and brazen,” said Fed National President Mo Razzaq.

“From the responses we received, it is clear that real action is needed by police, by courts and by the government to stem the overwhelming tide of crime against retailers and their staff. Everyone deserves to feel safe at work and for their businesses to be protected against criminals.

“Fed members are also sending a clear message that one of the catalysts for verbal and physical abuse in stores is asking for proof of age before selling an age restricted product. If the government presses ahead with its plans to phase out smoking and vaping through a progressive ban to gradually end the sale of tobacco products across the country, independent retailers will be subject to even greater levels of violence, abuse and theft.”

Calling for action from the government and not just words, Mr Razzaq continued: “Without effective deterrent, criminals and opportunistic members of the public will continue to commit crimes.”

According to Ministry of Justice statistics, during the year to March 2024, 431 fines were handed out for retail theft under £100, while Home Office statistics for the same period show that 2,252 cautions were accepted for shoplifting.