20 August 2025
Bira has expressed serious concern following today's announcement that UK inflation rose to 3.8% in July, higher than the expected 3.7% and marking the tenth consecutive month above the Bank of England's 2% target.
The latest Office for National Statistics figures show food and non-alcoholic beverages increased by 4.9% year-on-year, with beef, orange juice, coffee and chocolate among the worst-affected products. For independent retailers, many of whom operate on tight margins, these rising costs present a significant challenge in an already difficult trading environment.
Photocreo Bednarek/stock.adobe.com
Andrew Goodacre, CEO of Bira, said: "It is disappointing to see inflation rise to 3.8%. Higher inflation tends to dampen consumer confidence and demand, so it is bad news for the indie retail sector. The cause is undoubtedly a significant rise in business costs across all sectors and there is real concern about the Autumn budget."
"Independent retailers are feeling the squeeze from multiple directions. Rising product costs, increasing operational expenses, and now the prospect of reduced consumer spending power creates a perfect storm for our high street businesses. Many of our members are already operating on razor-thin margins, and this latest inflation data compounds their challenges."
Of particular concern to Bira members is the indication that rail fares are likely to rise by 5.8% next year, which will further impact both retailers' operational costs and customers' disposable income. The sustained inflation rate also makes Bank of England interest rate cuts less likely this year, maintaining pressure on businesses with borrowing commitments.
Bira continues to campaign for greater support for independent retailers, including fair business rates, action on retail crime, and policies that protect the future of Britain's high streets.
Bira's advocacy takes your voice to the heart of Parliament
Bira is at the forefront of championing the cause of independent traders and shopkeepers across Britain.
Our campaigns cover a wide spectrum of issues crucial to the success of independent traders including:
- Combatting the rising tide of retail crime
- Advocating for changes in legislation that promote fairness and flexibility
- Fighting for fairer business rates
- Overall reducing the regulatory burden
- £1 billion damages claim against Amazon by UK retailers
Catch up on key industry insights with podcast episodes available now
High Street Matters will discuss crucial subjects such as consumer trends, relevant government legislation, business rates, parking and staffing, providing top tips to help to help businesses stay ahead of the retail curve.
We’re talking to a cross section of our members from across the UK, from single retail outlets to small chains, and from large department stores to leisure and hospitality.
Listen to the series, available now.
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