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Is Inflation Starting To Bite Into The Retail Sector?

As we hear news that Unilever was unable to introduce price hikes to offset the rising cost of production in the last quarter, it seems as though inflation is starting to bite. Unilever is not the only company which is struggling to push through price rises with many on the high street struggling to cover rising production costs. So where does this leave the retail sector?

To be honest it is not just the retails sector which is struggling, with suppliers all feeling the pain of inflation. The problem now is that in order to maintain profitability these companies will be forced to make cost savings which at some point will translate into job cuts.

Less people in employment means less money for the high street which again puts pressure of costs and the amount a company can charge for their goods, and we have a vicious circle. This is the nightmare scenario although it has to be said that we are not in this situation yet, but the signs are not good.

Inflation is rising, costs are rising yet businesses are not able to pass over all (if any) of these rising costs to their customers - a very difficult trend to break out of without assistance from the authorities, hence the move to try and dampen inflation.

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