British inflation rises to a new high of over ten percent. A supermarket chain wants to help financially weak customers: Anyone who urgently needs everyday necessities but currently has no money can now have a card written to them digitally.
The British supermarket chain Iceland Foods is offering its customers interest-free loans to buy groceries in the face of extremely high inflation. The program is aimed at poor households who are struggling with rising living costs, the company said.
Iceland Foods, with its more than 900 stores, is working with non-profit lender Fair For You. Financially weak customers are to be granted small loans of 25 to 100 pounds (30 to 119 euros) via pre-installed cards, which can be repaid once a week.
"More than ever, during this unrelenting crisis in the cost of living, people are struggling to buy much-needed daily necessities," said Iceland Foods Managing Director Richard Walker. "It takes new thinking from business and government to find workable solutions."
The unusual program comes at a time when UK inflation is at a 40-year high, with goods and services costing an average of 10.1 per cent more in July than a year earlier, according to the Office for National Statistics in London . The strongest price driver is energy. But the British are also having to dig deeper into their pockets when it comes to shopping for everyday needs: retail prices have risen by 12.3 percent, the sharpest since 1981. Economists predict that the inflation rate could rise to more than 13 percent in the fall, triggering a long recession.
According to Iceland, the credit system should include flexible repayment programs. Borrowers should not be harassed by collection agencies, Walker promised on Sky News. The loans would also not be resold to third parties. According to Iceland, the new program builds on a successful pilot project with 5,000 customers. Almost three-quarters of them said it reduced their bill arrears. The loans are to be limited to six time windows per year.
