Prices of staples such as bread, meat and fish rose this month, the British Retail Consortium (BRC) said on April 29. According to a newly released survey, food inflation rose 2.6% compared to 2.4% recorded in March, the highest level in the past 11 months.

BRC chief executive Helen Dickinson said the rise in inflation came at a time when retailers were facing a raft of new recruitment costs due to higher national insurance contributions and an increase in the minimum wage. Indeed, the rise followed months of warnings about rising prices due to rising labour costs.

Notably, retailers are facing pressure from upcoming reforms to workers' rights, which are expected to make it harder for them to hire more staff, including part-time, during peak periods.

The Bill of Rights prohibits zero-hours contracts. Unlike traditional employment contracts, a zero-hours contract does not specify a minimum number of hours per week or month.

Many businesses fear the rules could create administrative difficulties and undermine efforts to tackle the UK's welfare crisis.

The Office for Budget Responsibility (OBR), Britain's financial watchdog, also warned that reforms to workers' rights could increase unemployment and inflation, and reduce economic growth.

The retail industry has lost nearly 250,000 jobs in the past five years and many major retailers have announced further job cuts since April due to high recruitment costs, said Helen Dickinson.

The warnings come as retailers brace for a further drop in sales due to the impact of US reciprocal tariffs. UK retail sales have fallen for seven consecutive months and are expected to fall further in May, according to a survey.

The UK’s economic growth forecast for 2025 and 2026 has been cut from 1.2% to 0.8% due to global trade fluctuations and domestic financial pressures, Xinhua news agency reported. Economists warned that increased uncertainty, weak exports and high costs could hit growth and employment in many key sectors.

According to Xinhua, Telegraph

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