April has seen a rise in inflation as a knock-on effect of the increased staffing costs hitting retailers.
The Consumer Prices Index (CPI) rose by 3.5% in the 12 months to April 2025, up from 2.6% in the 12 months to March, while food inflation jumped to 3.4%, according to latest figures from the Office for National Statistics.
Kris Hamer, Director of Insight at the British Retail Consortium, said:
“Headline inflation accelerated in April as additional costs from rising National Living Wage and Employers’ NI costs filtered through to prices faced by consumers, as well as rising costs of utilities (energy, water and broadband). The jump in labour costs pushed up food inflation, which climbed above 3%.”
Despite the overall increase in food prices, he claimed that “there were still deals to be had” with prices of dairy products such as milk, cheese and eggs falling on the month.
He added: “Rising inflation was inevitable following the wave of additional costs hitting employers, and particularly retailers who employ over 3 million people across the country. For months retailers have been warning that rising costs would lead to higher prices. To mitigate this, the government must now find ways to help reduce business costs and regulatory burden. It is imperative that its Employment Rights Bill targets unscrupulous employers and avoids burdening responsible businesses with additional costs which could put retail job numbers into reverse.”
