UK Inflation Rate Rises To 19-Month High Of 1. 4

The UK's inflation rate ticked up to 1. 4 per cent in September, a 19-month high, according to the British Retail Consortium. This uptick was driven in part by tax and payroll changes introduced by the government, including a new packaging tax set to take effect next month. As retailers grapple with rising costs, including higher national insurance and wage bills, these expenses are being passed on to consumers.

The impact on shoppers is palpable. Household budgets are being squeezed as prices for everyday items continue to rise. The DIY and gardening sectors have seen notable price hikes, while back-to-school essentials, such as laptops, have become more affordable. However, this modest relief is unlikely to offset the broader trend of increasing costs.

Helen Dickinson, CEO of the British Retail Consortium, noted that "households are finding shopping increasingly expensive." The culprit, she explained, lies in the confluence of global factors and domestic pressures, including higher national insurance and wage costs, which are reverberating throughout retailers' supply chains and ultimately, consumer prices.

As reported by the South China Morning Post, these developments have fuelled concerns about inflation. With the UK's economic landscape continuing to evolve, shoppers are bracing themselves for further price increases.

Tax and payroll changes introduced by the UK government, including a new packaging tax next month, are sending retail costs spiralling

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