For the sixth month in a row shop price inflation has slowed as retailers are competing for customers for Christmas shopping.
According to the British Retail Consortium (BRC)-NielsenIQ Shop Price Index, shop prices was high by 4.3% compared to November 2022, which is down from October’s 5.2%.
Food inflation slowed to 7.8% from October’s 8.8% due to lower domestic energy prices, fresh food and dairy products inflation slowed to 6.7% compared to the previous month of 8.3%.
BRC chief executive Helen Dickinson warned that rising business rates along with the National Living Wage increasing will “likely” stall and could reverse falling inflation.
Dickinson said, “Retailers are committed to delivering an affordable Christmas for their customers.
“They face new headwinds in 2024, from Government-imposed increases in business rates bills to the hidden costs of complying with new regulations.
“Combining these with the biggest rise to the National Living Wage on record will likely stall or even reverse progress made thus far on bringing down inflation, particularly in food.”
Mike Watkins, head of retailer and business insight at NielsenIQ, said, “With the recent slow-down in consumer spending, many non-food retailers will have been reliant on Black Friday to kick starts sales to avoid discounting in December, whereas food retailers will be optimistic that footfall will increase as inflation slows and shoppers get into a festive mood.
“Across all retail, this year shoppers will be making savings on everyday essentials to help pay for their family Christmas.”