// Tesco chairman John Allan warned that price rises could jump from 1% in the last quarter to 5% by the Spring
// Allan said the price rises, which will coincide with the National Insurance hike and energy price cap being removed, will hit the poorest in society the hardest
Tesco chairman John Allan has warned that the “worst is still to come” for hard-pressed consumers as food prices could rise 5% in the next few months.
Allan flagged that Tesco’s food prices only rose 1% in last quarter but are likely to rise by 5% by the Spring.
The price rises come at a time when UK shoppers are set to be hit by a National Insurance hike and the removal of the energy price cap, which will send fuel bills rocketing in April.
Allan told the BBC’s Sunday Morning show: “In some ways the worst is still to come – because although food price inflation in Tesco last quarter was only 1%, we are impacted by rising energy prices. Our suppliers are impacted by rising energy prices.
“The likelihood is that the inflation figure will rise. We’re doing all we can to offset it.”
“I predicted last Autumn that food prices by the Spring might be rising at about 5%. I sincerely believe it’s not going to be any more than that, it might even be slightly less.”
READ MORE: How much more will your shopping cost in 2022?
Allan warned that the price rises would likely hit the poorest in society the worst.
“Of course, 5% – if you’re spending, as some of the least-well-off families are spending, 15% of household income – is significant.
“It troubles us and I’m sure troubles many people that people may have to struggle to choose between heating their homes and feeding their families. That’s clearly not a situation any of us should tolerate.”
Click here to sign up to Retail Gazette‘s free daily email newsletter
