Sainsbury’s has said shoppers will face higher inflation as a result of shock tax changes from last week’s Budget, which will hit the retailer with an extra £140 million in costs.The supermarket giant’s boss Simon Roberts said there is “already too much pressure in the pipe” for the retailer to swallow an unexpected cost rise without it affecting prices.

Sainsbury’s has said the Autumn Budget has led to the supermarket chain warning they will take a £140 million in costs. The supermarket giant said that last week’s Budget will also lead to higher inflation due to the soaring tax rises.

Two of Britain's biggest businesses, BT and Sainsbury's , said tax changes in last week's budget would fuel inflation, a view which could affect the Bank of England's longer term interest rate plans.

Shoppers could face higher prices as a growing number of big British firms warn about the cost of the National Insurance (NI) tax rises on employers announced in last week's Budget. Sainsbury's and Marks & Spencer have hinted at price rises,

Rachel Reeves hiked employers' national insurance by 1.2 percentage points to 15 per cent from April next year.

The boss of British supermarket Sainsbury's said changes to national insurance made by the government in last week's budget will add 140 million pounds ($181 million) to its tax bill next year and warned the move would be inflationary.