British retailers are expected to raise prices in the coming months as higher employment costs take effect in April, according to a survey by the British Retail Consortium (BRC).

In February, shop prices rebounded by 0.4% from the previous month

• reversing January’s decline
• food costs rose and seasonal discounts on electrical goods and furniture ended
• prices were still 0.7% lower year-on-year, unchanged from January

BRC chief executive Helen Dickinson warned that rising operational costs—including a nearly 7% increase in the minimum wage, packaging levies, and higher payroll taxes—could push prices further up.

With inflation already at 3.0% in January and the Bank of England forecasting 3.7% by Q3, concerns persist over how much these rising costs will impact consumer prices. Food inflation climbed to 2.1% in February, with staples such as butter, cheese, eggs, and bread seeing increases, and global coffee prices expected to drive further rises. The BRC estimates food inflation could exceed 4% by mid-year and has urged the government to take action to ease the cost burden on retailers.