Following yesterday’s headlines on the ONS figures showing UK inflation ticking up, Nishith Rashtogi, Founder and CETO of Locus, had the following to say on why this is happening and what it means for retailers and supply chains navigating rising costs. 

 

“The ONS data reinforces the pressure that energy and transport costs can place on supply chains. UK CPI inflation rose to 3.1% in August, up from 2.9% in July, with transport — particularly motor fuels — making the largest upward contribution.

 

These pressures are likely to extend beyond the forecourt. Higher oil prices can feed into freight costs and fuel surcharges, while disruption around the Strait of Hormuz is adding uncertainty, insurance costs and potential delays for carriers operating through the region. For retailers, this creates further pressure on margins and may require a combination of selective price increases, sourcing adjustments and more cautious replenishment planning.

 

The important point is that consumer pricing pressure is no longer just a downstream concern. Energy and logistics shocks can move rapidly through the supply chain and ultimately influence the prices consumers see. With inflation moving higher, retailers will need to balance protecting margins with the needs of increasingly price-sensitive consumers.

                             

In this environment, static planning can break down quickly. Retailers and shippers need agile, real-time decision-making systems that help them reroute shipments, rebalance inventory and manage costs as conditions evolve. With continued uncertainty around energy and freight costs, the ability to operate through volatility is no longer a differentiator — it’s becoming a baseline requirement.”