Outrage as Costa Coffee increases prices by an average of 14p06/03/2022
Fury as Costa Coffee increases drinks prices for second time in six months with average of rise of 14p
- Drinks such as a flat white have increased in price from £2.95 to £3.30
- The price increases were introduced on June 1, worsening the cost of living crisis
- Costa Coffee said the firm is ‘facing unprecedented inflationary pressures’
Social media users have expressed outrage after Costa Coffee increased the price of its drinks for a second time in six months.
Drinks such as a flat white have increased from £2.95 to £3.30 while the popular medium skinny latte has risen from £3.10 to £3.35.
A small cappuccino has increased from £3.15 to £3.50.
The retailer said the price of drinks can vary from store to store. Also the increase depends on the type of drink and its size. However, the average increase is 14p.
The firm has tried to absorb some of the inflationary costs but it has been forced to pass on some of those increases to customers.
The price rises came into effect on June 1.
Costa Coffee is increasing the price of its products by an average of 14p as a result of ‘unprecedented inflationary pressures resulting in increased costs’
A Costa Coffee spokesperson customers who are members of the Costa Club can get a free drink after eight purchases or four if they use a reusable cup
A Costa Coffee spokesperson said: ‘Like all retailers, Costa Coffee is facing unprecedented inflationary pressures resulting in increased costs.
‘We know this is a challenging time for our customers as well, which is why we are absorbing costs wherever we can. Despite this we’ve had to make the difficult decision to increase the prices of our drinks.’
Several other retailers have increased prices, blaming supply issues, higher costs on the world market as well as spiraling energy rates.
Also, massive increases in the cost of diesel make importing goods more expensive.
The spokesperson added: ‘We are always thinking of new ways to offer great value across our range, including our £1 and £2 breakfast deal, available every day.
‘We also have additional exclusive offers for our Costa Club members, where customers can earn a free drink after buying eight drinks, or just four drinks when using a reusable cup. Currently they also have the chance to win millions of prizes through a special scan to win Coffee Shot competition.’
Sarah Coles of investment firm Hargreaves Lansdown told The Sun: ‘It’s these kinds of price rises that can catch us out, if we tend to buy our usual coffee on auto-pilot without really checking the cost.
Cost of living crisis hits Britain’s manufacturing sector as business optimism fades
The expansion of the UK’s manufacturing sector slowed to a seven-month low as inflation ate into household spending and exports dropped in part due to Brexit.
According to an influential survey, the sector struggled to keep up its growth in May.
Businesses blamed weaker growth in demand from within the UK, fewer export orders, troubled supply chains, rising costs and the war in Ukraine.
As a result the S&P Global/CIPS UK Manufacturing Purchasing Managers Index (PMI) hit 54.6 in May, down from 55.8 in April.
Anything above 50 means that the manufacturing sector is growing in the UK. If the score falls below 50 it is shrinking.
Although it notched up its 24th consecutive month of growth, the data shows a clear weakening for manufacturers.
A significant part of this is the consumer goods industry. For the first time in 15 months production actually fell, the researchers found when studying survey responses.
The contraction is in part linked to the consumers that are the end target for those goods. Recent inflation means many are struggling to keep up old spending habits.
‘Household demand slumped in response to the ongoing cost-of-living crisis,’ said Rob Dobson, director at S&P Global Market Intelligence.
‘With both input costs and selling prices rising at rates close to April’s peaks, the surveys suggest that there is no sign of the inflationary surge abating any time soon.
‘Manufacturers continue to report issues getting the right materials, at the right time, for the right price, and energy prices remain a major concern.’
New export orders dipped for the eighth time in the last nine months, the survey participants revealed.
Companies said that this was due to Brexit difficulties, delays in transportation, shipping disruptions and orders being cancelled due to the Ukraine war.
The cost that companies had to pay rose substantially in May, although dipped slightly from April when inflation was at near records.
As a result they were forced to raise their own prices. Selling prices rose almost as fast as in April, a record high.
‘Forward-looking indicators from the survey suggest that a further slowdown may be in the offing,’ Mr Dobson said.
‘Business optimism dipped to a 17-month low and weaker demand growth led to surplus production, meaning warehouse stock levels are rising.
‘Any reversal of this stock-building trend could reinforce the drag of other headwinds and add to downside risks to the outlook.’
‘Part of the problem is the soaring price of coffee itself, as a horrible combination of bad harvests, supply chain issues and shipping costs have pushed prices sky high.
‘However, the cost of the actual coffee has always been a small fraction of the price we pay. Costa will also be wrestling with hikes in prices of everything else they have to cover, from heating and lighting shops, to paying staff in a competitive environment.’
The cost of living crisis has forced Chancellor Rishi Sunak to announce a range of measures to help with the increase in heating homes.
Announcing a support package worth £15bn, Mr Sunak claimed there would be an ‘enormous easing’ in budgetary pressures next year with a reduction in inflation.
The Cabinet minister said he would ‘continue to act’ if energy prices and inflation remain high next year but predicted that budgets should be under less pressure for those in receipt of state pensions and welfare benefits.
The Chancellor made the comments after being asked by Martin Lewis, the founder of the Money Saving Expert website, whether the Treasury might have to step in again in 2023 if the crisis has not abated.
Mr Sunak responded by saying that he had ‘always been responsive to the situation the country is going through’ during his tenure as Chancellor, having previously produced fiscal support packages such as the furlough scheme to help Britain through the coronavirus lockdowns, along with his initial cost of living package in February.
But he indicated that additional support next year was less likely to be required due to pensions and benefits going up a ‘significant amount’ due to inflation, which has reached a 40-year high.
Mr Sunak said: ‘None of us know what energy prices are going to be next year.
‘But what I can tell you now and what people should be reassured by is that the way our system works, benefits and pensions next year are likely – subject to a review that has to happen legally – to go up by quite a significant amount because the inflation rate that decides that is set in September.
‘That is likely to be a relatively high inflation rate in September, so that is what will happen next year for everyone’s benefits and pensions, and that increase is most likely to be significantly higher than the inflation we will see next year on all the forecasts that are currently available.
‘So that should give people an enormous sense of reassurance that we are providing the help today to help them get through to that point and that actually next year there is going to be an enormous easing as all their incomes go up considerably compared to what the increase in prices is.’
In the Commons, Mr Sunak said his fiscal package was worth £15 billion.
But officials later conceded that there was a hidden £6 billion cost to the announcement over the next five years because the original £200 rebate for energy bills, which was announced in February and doubled by the Chancellor on Thursday, will no longer be paid back by consumers as originally planned.
During his interview with Mr Lewis, the Chancellor denied that he had been slow to announce support for the public, arguing that Ofgem’s indication that the energy price cap could rise by a further £800 in October had set the plan into action.
‘I wanted to wait for enough time so I had a sense of the scale of the problem and then we could size our support appropriately, and that’s what we’ve done,’ he told the consumer campaigner.
Food price inflation ‘to get worse before it gets better’, experts claim
Shop prices grew at the fastest rate in more than a decade in May on the back of rapidly accelerating food inflation, according to new figures.
Industry experts added that the situation for consumers would get ‘worse before it gets better’ as prices keep rising alongside other household bills.
The latest BRC-NielsenIQ Shop Price Index revealed retail price inflation of 2.8per cent in May, the highest figure since July 2011.
It said this accelerated from a 2.7 per cent rise in April as rapidly rising food prices offset discounting and promotions in clothing and homeware.
‘Retail prices edged up further as commodity, energy and transport costs continued to climb,’ said Helen Dickinson, chief executive of the British Retail Consortium.
‘It is likely to get worse before it gets better for consumers with prices continuing to rise and a further jump in energy costs coming in October.’
Shoppers have been warned the price of food is set to increase dramatically
Food inflation leap to 4.3 per cent in May from 3.5 per cent in April, reaching the highest since April 2012.
Fresh food prices grew by 4.5 per cent while ambient food, such as store-cupboard staples, rose by 4 per cent for the month.
Ms Dickinson added: ‘Fresh food inflation hit its highest rate in a decade, with items like poultry and margarine seeing some of the largest increases due to soaring costs of animal feed and near-record global food prices.
‘Retailers have been working hard to protect their customers from these rising costs, particularly at a time when households are being impacted by a huge rise in household energy bills.’
Mike Watkins, head of retailer and business insight at NielsenIQ, said: ‘The acceleration in food inflation reflects the fact that retailers can no longer absorb the full extent of increased supply chain costs now hitting the industry.
‘Promotions remain close to an all-time low and price cuts rather than volume-based offers such as multibuy are now the best way for retailers to help their shoppers manage their household budgets.’
It came days after the Office for National Statistics (ONS) revealed that budget pasta prices rose 50 per cent between April last year and April this year, with the cost of bread and minced beef also lifting substantially higher.
Meanwhile, the new data showed that non-food prices saw a slowdown in inflation to 2 per cent in May from 2.2 per cent in April.
If fuel prices pass £2/ltr, almost half who drive to work say they will be forced off the roads
New data from leading office space provider Offices.co.uk reveals the huge impact rising fuel costs will have on the UK’s return to the office and its post pandemic recovery plans.
As the cost of living crisis worsened for UK consumers, a snap survey of over 1500 UK office workers who commute by car to their workplace.
Latest data from the AA shows Petrol has now reached an average of 155.62p a litre. Diesel is averaging 161.28p. A year ago, they averaged 124.32p and 127.25p a litre respectively.
This means that the cost of filling up an average 55 litre tank is now almost £18 more expensive, at almost £86 per tank compared to last year.
If the average prices reach over £2 per litre, it will bump the price of the average 55 litre tank to £110, some £24 more than at present but a whopping £42 a tank more expensive than last year.
This represents an enormous 60% increase in fuel costs in the 12 month period.
Johnny Ratcliffe of Offices.co.uk said ‘The cost of living crisis that UK workers are experiencing is reaching breaking point.
‘Millions of households already facing the prospect of enormous price hikes in their home energy bills and rising food prices are now facing being unable to commute to their workplaces if the pump prices hit £2 per litre.
‘Our data shows just how serious an implication this is for the UK economy if almost half of workers surveyed say they won’t be able to afford to get to work anymore.
‘The Government needs to step in urgently otherwise working from home will become the only option for millions of workers. The ones that are able to work from home that is. Everyone else? I dread to think’.
Source: Read Full Article