Sky News: British business people are faced with rising prices amid the falling incomes of citizens.
The British economy is facing a challenge, which has not been seen in decades, with local businesses and consumers caught between rising prices and falling real incomes, Sky News reports.
“Commodities have risen in price, raw materials have risen in price, and, most importantly, energy and fuel have risen in price. And this affects the cost of almost everything that comes to stores from fields and factories. At the same time, the bad news is that the situation will become even worse,” warns reporter Paul Kelso.
As Mariella Gabbatt, a spokeswoman for J&B Wilde Fish & Poultry, said on the TV channel, only the cost of deliveries and bills for diesel fuel increased by 1.5 thousand pounds (about 160 thousand rubles) per month. “The prices we are now facing are just torture. They constantly ask: why are your prices rising? Why is this happening? Because we have to raise them, since everything has risen in price by at least 25-30%,” she complained.
In turn, the head of the London chain of cafes, Grind David Abrahamovich, said that his business, among other things, is faced with the need to raise salaries and pay more to the National Insurance Fund.
“Huge inflation is putting pressure on everything from the labor force. For example, labor costs rose by 5% last week. And these are only the first changes in April. The commodity price of coffee – we are talking about the coffee that we buy – increased two and a half times compared to what it was. Energy costs for us have increased by 50%,” he complained.
Western countries have imposed sanctions against Russia due to a special military operation to demilitarize and denazify Ukraine. The new restrictions affected mainly the banking sector and the high-tech industry. Calls to abandon Russian energy sources have become louder. However, disruption of supply chains has led to economic problems in Europe and the United States, primarily to higher food and fuel prices.
In the UK, tariff hikes have hit millions of households across the kingdom, with energy bills rising by £700 a year on average. All this led to a record inflation rate in 30 years: it reached 6.2 percent in February. According to a survey conducted by the National Statistical Office, residents of the United Kingdom have to reduce spending seriously. More than half of respondents said they save on non-essential items, 34 percent on gas or electricity, and 31 percent on food and essentials.