Ocado Group CEO Tim Steiner has blamed Chancellor Rachel Reeves’ Budget for raising family shopping bills.
The executive insisted that it would be “unrealistic” not to expect higher costs from the Budget not to result in food price hikes, The Telegraph reported.
“Am I surprised to see inflation coming through? Of course not,” he said.
“You can’t increase the cost of labour in food production and food distribution and food retailing in the way that we have, with National Insurance increases and the minimum wage increases, and not expect to see prices move.
“That would have been a wholly unrealistic expectation if anyone had that.”
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Steiner claimed that Ocado Retail was doing “a lot to keep prices down for shoppers”, noting that its average price rise was “dramatically below the level of food price inflation”.
The comments come after the typical basket value at the business increased by 0.7% to £124.19 for the six months to 1 June, reflecting a 1.4% hike in average product prices.
Ocado Group reported profit growth during its half year results today (17 July), driven by continued progress in its technology solutions.
Group adjusted EBITDA hit £91.8m for the 26 weeks ended 1 June, rising 76% from its £52m the same time last year. Within this, its technology solutions hit £72.8m from £34.8m the year before.
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