Never in 23 years as a retailer have I faced price increases like the ones which have taken place in recent months. Obviously the price of fuel has affected the cost of getting goods from A to B. One carrier who delivers to me regularly called in the receiver this week, unable to continue in a highly competitive environment. The oil price has also affected the price of anything made of plastic. One importer of accessories intimated a 8% rise in his prices across the board with immediate effect which is unheard of. Most suppliers have an annual increase and ride out any fluctuations during the year, building them in at their next increase. Raw food prices are soaring. My particular speciality is pet food and I am paying nearly 50% more for some items than I was in January. Many retailers are being very cautious about passing increases on, aware as they are of customers already being hit by the aforementioned fuel rises and increased mortgage payments.
A friend of mine in the building trade was laid off this week. Hundreds of other workers have shared his fate and there is more to come. An estate agent I know has sold two houses in the last month.
I may not be an expert, but from the sharp end of retailing both in food and consumer items, I’d be very surprised if inflation doesn’t reach double figures by the end of the year, and I really do wonder how we are going to avoid a full blown recession.
Filed under: Current Events, Politics | Tagged: credit crunch, fuel prices, inflation | 1 Comment »