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'Labour's decision to tax jobs and ramp up borrowing is killing growth and stoking inflation'

Daily Express

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July 17, 2025

RETAILERS are holding Rachel Reeves responsible for soaring food costs after prices surged for the third month in a row.

- Martyn Brown and Jon Walker

'Labour's decision to tax jobs and ramp up borrowing is killing growth and stoking inflation'

Despite the Chancellor's claims to be ending the cost-of-living crisis, figures show the rate of inflation jumped to 3.6% in June.

But the situation for families is worse, with the cost of weekly staples rising by 4.5% with bread, rice and pasta going up the most.

The alarm was sounded by the British Retail Consortium, which represents major supermarket chains and other high-street stores.

It said bad weather was partly to blame, but also warned that decisions taken by the Chancellor, including increasing National Insurance and the minimum wage, had pushed up costs.

Kris Hamer, director of insight at the BRC, said: "While inflation has risen steadily over the last year, food inflation has seen a much more pronounced increase.

"Despite fierce competition between retailers, the ongoing impact of the last Budget and poor harvests caused by the extreme weather have resulted in prices for consumers rising." BRC members include Asda, Lidl, Tesco, M&S and Sainsbury's.

The price of meat has soared, with beef and veal up 20.4% over 12 months. Lamb and goat are up by 10.2%.

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