Sainsbury’s CEO Warns of Inflation and Price Hikes

Sainsbury's CEO Simon Roberts has warned of inevitable price increases due to a £140 million hit from the rise in employer National Insurance contributions announced in the Chancellor's recent budget. The increase in NI from 13.8% to 15% for salaries above £5,000 is set to significantly impact the retail sector, with Roberts stating that the rapid cost inflation cannot be absorbed by the industry. This change, alongside the planned increase in the national minimum wage, is expected to contribute to higher inflation rates, as noted by the Office for Budget Responsibility. Other major retailers like Marks & Spencer and Wetherspoons have echoed these concerns, suggesting price hikes across sectors. The Treasury plans to review business rates to support high street stores, but changes are not expected until 2026-2027, adding to the current financial pressures faced by businesses.