(Bloomberg) --

Dunelm Group Plc, a U.K. home-furnishings company, is raising prices to protect profits from higher shipping and raw-material costs, adding to the string of bad inflation news for British shoppers.

Consumers are already bracing for faster inflation after the Bank of England warned that it could top 7% this year. Tesco Plc Chairman John Allan said this week that food-price inflation could rise as much as 5% in the spring.

“Inflation on commodity prices and freight rates is now impacting the cost of stock purchases,” Dunelm said in a trading update Wednesday. It said it’s working with suppliers, reviewing its range of products and “where appropriate, increasing retail prices.” 

The firm also flagged that it expects the impact of price pressures to grow through this year due to its “levels of stockholding.”

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