Beer prices will have to rise, says Cobra founder
The founder of beer brand Cobra has said prices will have to rise because of a “vicious cycle” of cost pressures.
Lord Bilimoria told the BBC that “virtually every business in every sector” is being squeezed by inflation, interest rate rises and tax increases.
The Cobra chairman, who is also president of the CBI employers’ group, said the picture had become really challenging for firms and consumers.
On Sunday, Tesco’s chairman warned the worst on price rises is yet to come.
John Allan told the BBC he expected food price inflation to reach 5% by the spring, hitting the “hardest-up harder”.
The warnings from two of Britain’s most prominent executives come as UK inflation stands at a 30-year high of 5.4%, and it is forecast to top 7% by April.
Meanwhile, the cost of energy is set to soar under new price-cap rules, prompting the chancellor to unveil a support package for households last week.