Retail sector braces for sticky inflation after BoE rate decision

The UK retail sector is preparing for continued inflation pressure after the Bank of England voted to hold the Bank Rate at 3.75%, signalling caution despite signs that headline inflation is easing. While policymakers see progress towards the 2% target, retailers warn that rising employment and regulatory costs could keep shop price inflation elevated through 2026. The Monetary Policy Committee (MPC) voted by a narrow margin to keep interest rates unchanged, underlining uncertainty over how quickly infl ...