The rising cost of goods is impacting high street retailers, but shoppers will be paying the price. Global supply chain disruptions, increased shipping and fuel costs and a Ukraine war now its fourth month, are all compounding inflation. Primark, one of the UK’s leading value fashion retailers, this week told the BBC it is raising prices in response.
John Bason, finance director at Primark's parent company Associated British Foods, told the news outlet he "regrets" raising prices, which will be take effect on select goods this autumn, as the fashion business battles with rising costs.
"Obviously Russia's invasion of Ukraine has really changed the economic environment and inflation in particular," Mr Bason told the BBC. "We've worked hard to ensure that our prices stay where they are, but at some point the inflationary pressures is such that you do have to do something about it."
Earlier this year high street chain Next said its prices will be increased by 6 percent this winter, and its spring and summer collections will be 3.8 percent more expensive.
Figures released by the British Retail Consortium (BRC) in April show shop price annual inflation accelerated 2.7 percent in April, up from 2.1 percent in March. This is above the 12 and 6-month average price increases of 0.4 percent and 1.5 percent, and marks the highest rate of inflation since September 2011.