While some experts believe that the cost of living crisis is over, families are continuing to feel the pressure of rising prices – and now Christmas dinner could be hit by hikes
Rachel Reeves is coming under major pressure to stop the rise in food prices(Image: Express)
A Christmas dinner crisis is feared to be on the horizon amid warnings food inflation will rise to 6%.
Industry leaders warn the increase, expected by the end of the year, poses a “significant challenge” to household budgets in the run-up to the festive season. The British Retail Consortium is warning that Chancellor Rachel Reeves risks “fanning the flames of inflation” if she hikes taxes in the coming budget.
Food inflation has risen this month to 4% year on year – its highest level since February 2024. Beef, chicken and tea prices are among those that have risen the most this year.
Helen Dickinson, chief executive at the BRC, said: “Retailers have done everything they can to shield their customers from higher costs. But given their slim margins and the rising cost of employing staff, price rises were inevitable.
Christmas dinner could be in jeopardy for many families as food inflation continues to skyrocket (stock)(Image: Getty Images)
“The consequences are now being felt by households as many struggle to cope with the rising cost of their weekly shop,” Helen added. She called on the chancellor “to support the everyday economy by backing the high street and the local jobs they provide”.
According to the latest figures, food and non-alcoholic beverages saw the highest increases in price, rising by an average of 4.5% in June. That is now the third consecutive time the rate has increased, sparking calls for the government to step in and tackle the rate of inflation.
On top of this, Chancellor Rachel Reeves has spooked businesses as she prepares to implement a wealth tax that some experts say could stifle growth and investment into the country. However, Downing Street has disputed this, and has said that it is on the side of enterprise.
The government says it is committed to tackling inflation (stock)(Image: PA)
An HM Treasury Spokesperson Said: “We are a pro-business government which has capped corporation tax and struck major trade deals with the EU, US, and India—cutting costs, protecting jobs, and fuelling growth. 865,000 employers do not pay employers National Insurance because we increased the Employment Allowance, and as set out in the Plan for Change, the best way to strengthen public finances is by growing the economy – which is our focus.
“Changes to tax and spend policy are not the only ways of doing this, as seen with our planning reforms, which are expected to grow the economy by £6.8bn and cut borrowing by £3.4bn.”
It comes as some economic analysts believe the cost of living crisis could be over. According to Sky News, some economists believe that while the price of food is continuing to rise, the UK is over the worst of the economic turmoil.
It comes as economists point out the potential for the cost of living crisis to be over (stock)(Image: Getty Images)
They explained that while food inflation continues to skyrocket, overall inflation remains within the Bank of England’s target of 2%. They also pointed towards the “feelgood factor” – to see each person’s disposable income – revealing just how much money is being left over once taxes are paid.
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