Aldi warns food prices may rise if Budget lifts costs

Aldi’s boss warned that any measures that increase the costs on employers in the budget may lead to higher food prices.

Giles Hurley, General Manager of Aldi UK, said the impact of last year’s national insurance rise and the cost of new packaging rules in the supermarket sector “fluctuating according to prices on the shelf”.

“Any policies affecting the business costs of the enterprise should be considered very carefully because of the real risk they find. He said.

Last month, Chancellor wrote more than 60 retailers to Rachel Reeves and called on to avoid more taxes in the industry, which is one of the most difficult effects of the government’s income upgrade measures.

Mr. Hurley was talking because Aldi reported that annual sales up to £ 18.1 billion, but the profit fell more than the fifth to £ 435.5 million.

He said that this is largely price cuts, infrastructure and higher wage investments.

Aldi did not explain how much tax change it would cost this year.

Mr. Hurley, so far more than 300 million pounds of money so far, the increasing cost of goods and trying to keep prices as low as possible, he said.

Nevertheless, supermarket prices for many basic products were rockets this year.

Take a 500g package of lean beef shore. According to Retail Specialist Ged Futter, at the beginning of the year, a few great supermarkets at £ 3.79 is currently more than £ 5 in all main chains.

Aldi boss, the company’s new stores around Sutton Coldfield’da BBC’ye wandering around the BBC’ye, “Cattle prices increased by 30% this year and herd dimensions are falling and this ground beef price,” he said.

Hurley said that global factors have a great impact on food inflation everywhere, including increasing commodity prices.

However, he believes that some domestic policy decisions have been “more” more “more” stubborn inflation “in the UK” perhaps “in the UK” more than other developed countries.

British food inflation rose to 4.9% in July. According to Eurostat figures, it was 3.9% in the EU.

The UK Bank said that the new tax on retailers to reduce packaging wastes can increase food prices further in this autumn.

In the latest view, the Food and Beverage Federation (FDF) thinks that food inflation can reach 5.7% by the end of December and still work at the end of 2026.

This said that prices are stabilized or rejected for some important goods such as cocoa, coffee and olive oil.

FDF, the main driver of the UK Food Inflation, the increase in the minimum wage and the higher national insurance contributions for employers, he said. He estimated that new packaging rules would add an estimated £ 1.1 billion for food and beverage enterprises from next month.

Hurley, “If you talk to customers throughout the country, they will say that inflation is continuous and urgent,” he said. “Action needs.”

He said that farmers are required for farmers to increase the amount of food produced in the United Kingdom, which may have a “really positive effect” on inflation.

“Ultimately, a flexible British food sector depends on having a completely flexible British farm sector.”

He acknowledged that supermarkets had a role in playing.

In a statement, a Treasury spokesman said: “Chancellor announced that the future budget will establish an economy working for working people.

“This involves lowering inflation, keeping strict public expenditures and taking over the cost of living.”

The budget will be announced on 26 November.

In the meantime, he takes pressure on expansion. There are currently 1,060 stores and plans to add 80 more stores supported with an investment of £ 1.6 billion for the next two years.