×
2 596
Fashion Jobs
ESTEE LAUDER
Clinique - Consultant - Brown Thomas, Dublin - 15 Hours - Part-Time, Permanent
Permanent · Dublin
SHISEIDO
Nars Account Manager - Harvey Nichols London (37.5 Hours)
Permanent · London
ESTEE LAUDER
Clinique - Consultant - m&s Newcastle - 15 Hours - Part Time, Permanent
Permanent · Newcastle upon Tyne
ESTEE LAUDER
jo Malone London - Marketing And Consumer Engagement Director
Permanent · London
AESOP
Retail Consultant | Part-Time, Permanent | Aesop Selfridges Exchange Square, Manchester
Permanent · Central
BOOHOO
Print Sales Account Manager
Permanent · MANCHESTER
VF INTERNATIONAL
dc Team Leader
Permanent · COALVILLE
ESTEE LAUDER
Mac Cosmetics - Business Manager - Mac Stratford2, London - 37.5 Hours / Week - Full Time, Permanent
Permanent · London
HARRODS
Brand Manager
Permanent · LAKESIDE
HARRODS
Uniformed Security Officer
Permanent · LONDON
VF INTERNATIONAL
Senior Distribution Systems Specialist
Permanent · COALVILLE
ESTEE LAUDER
Bobbi Brown, la Mer And Darphin - CRM & Insights Assistant
Permanent · London
HARRODS
Food Supply Manager
Permanent · LONDON
JOHN LEWIS
Loss Prevention Partner
Permanent · CAMBRIDGE
HEAD OFFICE
Cyber Security Lead – Incident Response
Permanent · BRACKNELL
HEAD OFFICE
Delivery & Operations Manager
Permanent · BRACKNELL
BOOHOO GROUP
Product Manager
Permanent · MANCHESTER
DEBENHAMS
CRM Executive
Permanent · LONDON
PRETTYLITTLETHING
Business Analyst
Permanent · MANCHESTER
PRETTYLITTLETHING
Buying Admin Assistant
Permanent · MANCHESTER
BOOHOO GROUP
Warehouse Operative - pm Shift
Permanent · WELLINGBOROUGH
BOOHOO GROUP
Product Insights Manager
Permanent · MANCHESTER
Ads
By
Reuters API
Published
May 18, 2022
Reading time
3 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

UK inflation hits 40-year high of 9%, could derail fashion and beauty recovery

By
Reuters API
Published
May 18, 2022

British inflation surged last month to its highest annual rate since 1982, piling pressure on finance minister Rishi Sunak to step up his help for households facing a worsening cost-of-living crisis.


Photo: Pixabay/Public domain



There are also widespread fears that this will dent spending on discretionary items as consumers prioritise necessities, and the fashion and beauty sectors' post-pandemic recoveries could come to a grinding halt.

Consumer price inflation hit 9% in April, the Office for National Statistics said on Wednesday, surpassing the peaks of the early 1990s recession that many Britons remember for sky-high interest rates and widespread mortgage defaults.

The Reuters' poll of economists had pointed to a reading of 9.1%.

Britain now has the highest inflation rate of Europe's five biggest economies and almost certainly the Group of Seven countries, with Canada and Japan yet to report figures for April. Neither are likely to match Britain's price growth.

"We cannot protect people completely from these global challenges but are providing significant support where we can, and stand ready to take further action," Sunak said.

Sterling fell after the data and was down 0.6% against the dollar at 0816 GMT.

Soaring energy bills were the biggest inflation driver, reflecting last month's increase in regulated energy tariffs. Knock-on effects from Russia's invasion of Ukraine means those bills are likely to jump higher again in October.

Households are facing the biggest cost-of-living squeeze since records began in the 1950s, according to Britain's budget forecasters, and consumer confidence has sunk towards all-time lows.

Anti-poverty campaigners called on Sunak to act now, starting with an immediate increase in the value of welfare benefits to match inflation.

"As the price of essentials like food and energy continue to soar, the Chancellor's (finance minister's) inaction will make an already desperate situation for many even worse," Rebecca McDonald, senior economist at the Joseph Rowntree Foundation which campaigns on behalf of lower-income households, said.

A survey published on Tuesday showed two in three people in Britain had kept their heating off when they would normally have turned it on, almost half were driving less or changing supermarkets and just over a quarter say they have skipped meals.

Food prices rose by nearly 7% in the 12 months to April, the ONS said.

On Monday, Bank of England Governor Andrew Bailey, speaking to lawmakers, said food price rises were a major worry as he apologised for "being apocalyptic for a moment."

While the government has said it now has a£ 22 billion ($27.4 billion) package of support for households, much of this is cancelled out by the effect of recent tax increases on workers.

An increase in prices charged by restaurants and cafes, as value-added tax rates went back to their pre-pandemic levels in April, also added to the inflation jump last month.

WORSE TO COME

The BoE this month forecast inflation would top 10% later this year and investors expect it will add to the four interest rate increases it has implemented since December and which have taken its Bank Rate to 1%, its highest since 2009.

"Things are going to get worse before they get better," said Paul Dales, chief UK economist at Capital Economics consultancy of Wednesday's data.

Retail price inflation -- an older measure which the ONS says is now inaccurate, but which is widely used in commercial contracts and to set interest payments on inflation-linked government bonds -- jumped to 11.1% last month, also the highest since 1982.

There were signs of further inflation pressure ahead as manufacturers suffered the joint biggest increase on record in the prices they pay for their raw materials, which were up by an annual 18.6%, matching March's high.

Factories increased their prices by 14% over the 12 months to April, the biggest jump since July 2008.

© Thomson Reuters 2022 All rights reserved.