UK consumers likely to face higher prices ‘for many months to come’

Data shows even if Iran war ends, shop price inflation on rise, while only 16% of firms left unscathed by conflict

Higher prices could persist over the summer even if ceasefire talks between the US and Iran bear fruit, consumers have been warned, with economic shock waves likely to be felt “for many months to come”.

Disruption to global shipping, coupled with soaring prices for energy and raw materials, have driven up costs for UK companies, with the impact already filtering through to prices paid at the tills, according to fresh inflation figures.

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Streeting says he resigned because Labour ‘in fight of our lives against nationalism’, and is currently losing – UK politics live

Former health secretary standing down after saying he no longer had confidence in Keir Starmer as PM

Labour is in a curious, transitional state at the moment. Officially Keir Starmer is committed to staying as leader and prime minister until the next election. There is no formal leadership contest underway. But, informally, it has already started, with Andy Burnham and Wes Streeting already setting out their offer to the Labour membership. We will hear more from Streeting this afternoon. But much of the parliamentary party is already working on the basis that a Burnham premiership is all-but-inevitable, and so Streeting’s interventions may turn out to be more about shoring up his position in a potential future Burnham administration than a rehearsal for an election that may never happen.

Here are some of the stories out today covering Starmer, Burnham and Streeting.

Ailbhe Rea in the New Statesman says an insider describes the atmosphere in No 10 now as “very, very odd”. She says:

Starmer and his remaining loyal cabinet ministers want to make every day that they are still in office count, and are determined to cut through the noise of the leadership drama. Many cabinet ministers, who may not survive long in their posts if Starmer is replaced as Prime Minister, are desperate to set a legacy and bank achievements in their briefs while they can. “Let’s get out there and make the case for what we’re doing,” has been Starmer’s message to colleagues. There is even a fleeting hope inside Downing Street that the leadership speculation “burns itself out”, that “Wes and Andy tearing chunks out of each other for weeks might just make Keir look better”. But even many loyalists accept that is wishful thinking. “The writing is on the wall, even if we don’t know exactly what form that takes yet,” one concludes.

Patrick Maguire, Geraldine Scott and Larisa Brown in the Times say Starmer could stay in Downing Street until early next year. They report:

Ministers familiar with Starmer’s thinking say he has no plans to step down before the Labour Party conference in September and is unlikely to relinquish office before Christmas.

They told The State of It, the political podcast from The Times and Sunday Times, that there were still significant obstacles ahead for Andy Burnham, the mayor of Greater Manchester, who on Tuesday refused to rule out breaking Labour’s manifesto pledge against tax rises.

Caroline Wheeler in the i says cabinet ministers are already angling for jobs in a Burnham administration. She says:

Senior ministers are preparing visits to Makerfield amid growing expectations in Westminster that Burnham could ultimately take the Labour leadership – and with it the power to appoint the next Cabinet.

“The equation cabinet ministers are making is that if they go and he wins they will get a plum job,” one senior source said. “If they don’t go and he wins, he will remember. And if they don’t go and he loses, he will remember.”

Many now believe that Burnham is lining up to make Ed Miliband, the Energy Secretary, as his chancellor. It comes as Miliband’s special adviser was seconded to work with Burnham for the by-election campaign …

Burnham is also widely expected to make Lucy Powell, the Deputy Leader of the Labour Party, his deputy prime minister. Multiple sources said that other women likely to be given top jobs include Angela Rayner, the former deputy prime minister, Lisa Nandy, the Culture Secretary, and Louise Haigh, the former transport secretary, who is also the co-chair of the influential soft-left Tribune group of MPs.

Sam Blewett at Politico has taken an in-depth look at the team supporting Burnham. He says the key figure is Kevin Lee, director of the Greater Manchester mayor’s office, who has been advising Burnham with little break since 2010.

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Court rules Coles misled shoppers with its ‘Down Down’ discount campaign

Landmark finding against supermarket giant comes after competition watchdog argued that markdowns did not represent genuine savings

Coles misled Australian shoppers by promoting fake “Down Down” discounts on everyday grocery products, the federal court has ruled in a landmark decision for the supermarket industry.

Justice Michael O’Bryan handed down his judgment on Thursday, delivering a significant blow to Australia’s second-largest supermarket chain, which had argued that the discounts represented genuine savings during a period of high inflation.

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Supermarket foods claiming to be ‘natural’ or ‘sustainable’ mostly just using marketing terms, researchers find

Survey of 27,000 Australian supermarket items found some products boasting environmental benefits had significantly higher emissions than unlabelled counterparts

Foods in supermarkets boasting environmental terms such as “natural” or “sustainable” are mostly just using marketing speak, rather than verified claims, Australian researchers have found.

More than 27,000 packaged foods sold at Coles, Woolworths, Aldi, IGA and Harris Farm supermarkets in Sydney were assessed by researchers from the George Institute for Global Health.

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Lidl to open 50 UK stores in year ahead – and its first pub

Almost 2,000 jobs will be created, with retailer vying to overtake Morrisons as Britain’s fifth largest supermarket

Lidl is to open 50 new UK stores in the year ahead – as well as its first pub – as it aims to overtake Morrisons as the country’s fifth largest supermarket chain.

The German-owned retailer has begun building a pub in east Belfast in response to strict local licensing laws that cap the number of premises that can sell alcohol.

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Waitrose under pressure to reinstate worker sacked after stopping shoplifter

Retailer faces public outcry over treatment of Walker Smith, who tackled shoplifter stealing Easter eggs at London store

Waitrose is under growing pressure to reinstate an employee of 17 years who was sacked after tackling a shoplifter who was trying to steal Lindt Gold Bunny Easter eggs.

The retailer has faced public outcry over its treatment of Walker Smith, who was fired two days after he stopped the shoplifter taking items from the Easter egg display.

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Waitrose employee sacked after stopping shoplifter from taking Easter eggs

Walker Smith, 54, who worked for retailer for 17 years, says he grabbed bag from thief before they escaped

A Waitrose employee of 17 years has described his devastation after being sacked for stopping a shoplifter who had ransacked a display of Lindt Gold Bunny Easter eggs.

Walker Smith, a shop assistant at a branch of Waitrose in Clapham Junction, south London, was going about his normal duties when a customer stopped him. “They told me someone had filled up a Waitrose bag with the eggs,” he said.

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Ocado failing to deliver on its potential as one of UK’s great technology hopes

Firm’s automated warehouses are struggling to compete against swift deliveries from stores by bike riders

Only six years ago, the boss of Ocado Group was writing the obituary for supermarkets as he predicted that a surge in online grocery shopping during the pandemic had brought forward the hi-tech future.

“Not every store will disappear, but there will be a dramatic shift,” Tim Steiner said at the height of the Covid pandemic, when shopping from the sofa became the only option for many.

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Ocado to cut 1,000 jobs in £150m cost-saving drive

Major restructure by retail technology business will lead to reduction of about 5% of global workforce

Ocado is to cut 1,000 jobs as the retail technology business attempts to slash costs by £150m in a major restructure.

The group confirmed about 5% of its global workforce is being cut, with about two-thirds of the job losses affecting its UK operations.

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Groceries via delivery apps like Uber Eats, DoorDash and Milkrun can be up to 39% more expensive

Seven out of 13 items at Aldi were priced higher on DoorDash than in store, while Milkrun charged more for 11 out of 13 items from Woolworths

Convenience can come at a steep price, Choice has found, with Australian consumers paying up to 39% more for groceries ordered through rapid delivery apps.

Choice compared in-store prices of 13 common grocery items available at Coles, Woolworths and Aldi with their equivalents on third-party apps Uber Eats, DoorDash and Woolworths-owned Milkrun.

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Tesco steps up UK sales as Asda struggles amid rising inflation

Marks & Spencer bounces back from cyber-attack as it extends contract of chair Archie Norman

Tesco has grabbed a bigger slice of Britons’ supermarket shopping, as it stepped up sales and market share, while its rival Asda continued to struggle amid rising grocery inflation.

The UK’s biggest supermarket increased its market share to 28.3% in the 12 weeks to 5 October, up 0.7 percentage points on a year earlier, while its sales advanced nearly 7%, according to Worldpanel by Numerator.

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Marks & Spencer food chief calls for ‘concrete target’ on British produce

Alex Freudmann says ministers need to increase proportion of food eaten in UK that is grown or reared in Britain

Marks & Spencer’s head of food has called on the government to set a legally binding “concrete target” to increase the proportion of food produced at home, as he warned that Britain was becoming “less and less self-sufficient”.

Alex Freudmann, the managing director of the upmarket grocer’s food division, which works with 10,000 British farms, said: “If ministers are committed to domestic food supply, then they need to prove it, and that’s why we’re backing our farmers’ calls for a clear and concrete target to increase the proportion of food eaten in Britain that’s grown or reared in Britain.”

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Iceland says it will pay customers £1 if they report a shoplifter

Grocery chain employees will verify the incident and the reward will be adding to the shopper’s loyalty card

The grocery chain Iceland is offering customers who shop a thief a £1 reward on their loyalty card.

The frozen food specialist said that anyone who spots a suspected shoplifter in its stores should inform the nearest Iceland employee who will verify the incident before adding the reward to the individual’s loyalty card for immediate use.

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Women’s Euro 2025 final to cap £800m boost for UK supermarkets, pubs and retailers

Sunday’s England v Spain match set to be most-watched women’s football match in UK history, benefiting food, drink and hospitality industries

The climax of the exhilarating women’s Euros, as the Lionesses attempt to atone for their loss to Spain at the World Cup, is poised to be the most-watched women’s football match in UK history with the tournament providing a more than £800m boost to supermarkets, pubs and retailers.

With Sunday’s showdown aired on both ITV and the BBC, and their respective streaming services, TV industry executives expect that, with the help of a family-friendly 5pm kick-off time, viewing will eclipse the 14.8 million peak audience when England lost 1-0 to Spain in Sydney two years ago, if the match is close.

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Cheaper imported chicken and beef increasingly seen in UK supermarkets

Grocers turning to Australia, Poland and Uruguay for meat, prompting claim they are undermining British farmers

Cheap chicken and beef from Australia, Poland and Uruguay is on the rise on UK supermarket shelves, according to the National Farmers’ Union, as supermarkets look for money-saving options.

The NFU regularly monitors supermarket shelves and notes that Morrisons is now selling raw chicken from Poland in its poultry aisle. Chicken in Poland is generally produced to different standards from those in the UK, and is cheaper as a result. Morrisons requires that for its UK chicken, poultry must be kept at a maximum stocking density of 30kg/m2, giving the chickens more space to roam. In Poland, this is up to 39kg/m2.

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Asda unlikely to see growth before year end at earliest, says supermarket boss

Sales at UK’s third largest supermarket fell 3.1% in four months to April, as rival Aldi announces big expansion

Asda is unlikely to see growth before the end of this year at the earliest, the supermarket’s chair, Allan Leighton, has said, as sales continue to fall despite price cuts and more stock on its shelves.

Meanwhile, Aldi, which is closing the market share gap with Asda, put further pressure on its rival by announcing significant expansion plans across the UK.

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Cost of Easter rises as UK chocolate, lamb and hot cross bun prices soar

Shoppers also face more ‘shrinkflation’ as manufacturers ‘try to offset rising production costs’

Exchanging Easter eggs and tucking into a roast dinner are among the highlights of the spring holiday but Britons face paying more for this year’s celebrations after a sharp rise in the price of essentials such as chocolate, lamb and hot cross buns.

A leg of lamb joint now costs on average £13.94 a kilo in supermarkets, which is 10%, or £1.31, more than last year, according to the price analysts Assosia. Over two years, the jump is nearly 27%, or approaching £3 more a kilo, based on the pre-promotion price across Tesco, Sainsbury’s, Asda and Morrisons.

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Labor promises price gouging crack down on supermarkets

Anthony Albanese says his government, if re-elected, will establish taskforce to investigate ‘excessive’ pricing regimes, and it will be enforced by ACCC

Anthony Albanese has promised that a re-elected Labor government will outlaw price gouging by supermarkets, marking the first big policy announcement of the campaign.

The prime minister on Sunday will announce Labor will act on recommendations made by the Australian Competition and Consumer Commission (ACCC) to improve transparency about supermarket prices, promotions and loyalty programs.

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Groceries are getting more expensive at Woolworths but cheaper at Coles, report finds

Choice price tracker finds cost of shopping at Aldi barely changed between March and December 2024 in quarterly assessment of 14 common items

The cost of groceries at Woolworths has gone up even when factoring in specials, while prices at Coles decreased and Aldi’s remained relatively stable, according to Choice’s latest supermarket price tracker.

The consumer advocacy group has released its fourth quarterly report, funded by the federal government, into supermarket prices, which it assesses by purchasing a basket of 14 common grocery items from different stores.

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Ten thousand Kroger-owned grocery store workers strike in Colorado

Two-week strike begins as union for King Soopers alleges surveillance of workers and pushes to gut health benefits

Ten thousand workers at Kroger-owned King Soopers grocery stores in Colorado begin a two-week unfair labor practice strike on Thursday.

The union, United Food and Commercial Workers local 7, whose contract expired last month, voted 96% in favor of authorizing the strike.

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