Inflation hits 7% in the UK as cost of living rises
Inflation rates have reached 7% in the last 12 months – the highest since 1992. The 30-year high comes from a huge impact on oil prices. Although not only linked to this year’s global changes, it’s also been largely impacted by Russia’s invasion of Ukraine.
Many Brits are facing a crippling cost of living crisis, with energy bills and fuel prices rising far faster than wages.
- Average petrol and diesel prices soared to over 30% more than this time in 2021 – the biggest increase since 1989.
- Weekly food shopping bills increase and signs of food shortages occurred in the supply chain.
- The Bank of England have warned inflation may reach 8% this month and 10% later this year.
- Ofgem energy price cap rises by 54% – hitting household bills hard.
Tesco sees profits treble but warns of soaring costs
Source: BBC News
The large supermarket giant Tesco have reported pre-tax profits of over £2bn, up from £636m the previous year – over triple. Tesco has vowed to rein in prices as a result of its large profits, aiming to keep the costs as low as possible for consumers.
However, Chief Executive Ken Murphy said there are “significant uncertainties” coming as the “external environment has become more challenging in recent months”. He also said Tesco is “laser-focused on keeping the cost of the weekly shop in check – working in close partnership with our suppliers”.
Supplier costs have increased, with Tesco accepting a 20% price rise for milk amongst warnings this will continue going up. The Russian invasion has had a knock-on effect throughout the supply chain, not only increasing fuel prices, but making some items more difficult to source. Tesco is also looking to increase its workers’ pay to £10.10 per hour.
Aldi trials all-electric delivery trailer
Source: Retail Sector
The trailer can be charged at Aldi’s regional distribution centre in Cheshire and it produces zero carbon emissions, along with low noise emissions. The refrigerated trailer forms part of Aldi’s effort to lower carbon emissions, aiming to use the results of this trial to inform its next steps. Aldi is also testing more environmental fuels, such as compressed natural gas and hydrotreated vegetable oil.
Etsy independent sellers go on strike over high transaction fees
Source: Retail Gazette
The popular e-commerce marketplace for independent sellers, Etsy, hikes up transaction fees from 5% to 6.5%. As a result, a number of its sellers have gone on strike, closing their online stores in protest. A petition against Etsy has been signed over 61,500 times.