Andy Searle, EMEA Leader of Consumer Products, comments on the ONS' Consumer Price Inflation data

“This morning’s inflation data may come as a surprise, but the reality is that it now follows a familiar pattern. Consumers remain stretched, sentiment has been dented, and further price increases are becoming a hard sell for retailers. For many businesses, post-COVID pricing strategies have now run their course. The focus must now switch to driving volume without sacrificing margin, which means greater control over keeping costs competitive and more streamlined operations. Retailers that can stay agile and keep this front of mind will be best equipped to navigate what’s shaping up to be an uncertain second half of the year.

“Ongoing geopolitical uncertainties have added fresh pressure on retailers. Talk of potential closures to key ports has added an additional layer of sensitivity across key trade routes, fuelling further volatility in the energy market. This shift arrives at a critical moment, just as supply chains were beginning to stabilise for many retailers.”