Shop price inflation eases against for sixth consecutive month as Christmas shopping rush begins

Shop price inflation has slowed for the sixth month in a row ahead of the busy Christmas shopping period, according to the British Retail Consortium (BRC)-NielsenIQ Shop Price Index.

Store prices dropped from 5.2% higher in October year-on-year to 4.3% in November. This is also the lowest level of shop price inflation since June 2022.

Food prices were 7.7% higher year-on-year in November, a decrease form October's level of 8.8% and the seventh consecutive drop. Food price inflation is now at the lowest level since July 2022 owing to lower domestic energy prices involved in the process of producing fresh food.

Fresh food as a separate category dropped from 8.3% in October to 6.7% in November. This was proportionately lower than the rate for ambient food, which dropped but only to 9.2% due to the price of importing food against the weak pound. As for non-food items, inflation has dropped from 3.4% to 2.5%.

BRC chief executive Helen 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.”