UK shop prices improve slightly in November

UK shop prices saw a slight improvement in November with deflation easing to 0.6 per cent, compared to 0.8 per cent in October, marking its slowest rate of decline since September 2021, according to data from the British Retail Consortium (BRC).

Non-food deflation improved, while food inflation edged down to 1.8 per cent, its lowest since November 2021.

Fresh food inflation rose slightly to 1.2 per cent, driven by higher costs for imports like seafood and tea. However, ambient food inflation dropped to 2.7 per cent, reflecting the lowest rate since February 2022.

BRC CEO Helen Dickinson cautioned that price pressures, including a £7 billion increase in retailer costs in 2025, could reverse deflation trends. She called for government action on business rates and the packaging levy to mitigate impacts.

Mike Watkins, Head of Retailer and Business Insight at NielsenIQ, noted cautious consumer spending but highlighted extended discounts during Black Friday and December as retailers aim to boost sales momentum.

Attribution: the British Retail Consortium (BRC)

Subediting: M. S. Salama