
"Any policies which affect the operating costs of business should be considered very, very carefully because of the very real risk they find their way back into the food system and on to prices, Hurley told the BBC. UK grocery inflation jumps to highest level in 15 months The German discounter said its decline in profits from 552.9m to 435.5m was in part due to the budget chain's spending in price promotions and raising pay for staff, as well as an intensive store opening programme."
"The trade body, which said food and non-alcoholic drink prices had risen by 37% between January 2020 and July 2025, blamed the price increases of the past two years on the financial impact of domestic policies such as April's rise in employer national insurance contributions (NICs) and the new packaging tax. Hurley said the impact of the NICs rise and the extended producer responsibility for packaging had rippled through to prices on the shelf edge."
Policies that increase employers' operating costs risk being passed through to consumer food prices. Aldi UK & Ireland reported sales of 18.1bn while profits fell from 552.9m to 435.5m. The profit decline reflected spending on price promotions, higher staff pay and an intensive store-opening programme. Forecasts from the Food and Drink Federation project food and drink inflation could reach 5.7% by year-end, up from a prior 4.8% estimate, with prices up 37% between January 2020 and July 2025. Domestic measures cited include April's rise in employer national insurance contributions and a new packaging tax. Aldi plans 1.6bn investment to expand to 1,500 stores.
Read at www.theguardian.com
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