Prices in British shops did not fall as sharply this month as in the previous month, according to a survey published on Tuesday by the British Retail Consortium (BRC).
The survey results suggest that consumers may be facing renewed pressure on their purchasing power.
According to the BRC, annual shop price deflation was 0.6 per cent in the 12 months to November, following an earlier 0.8 per cent fall in the 12 months to October.
Shop price inflation fell between May 2023 and July 2024, after which it fell further, up to the present.
BRC chief executive Helen Dickinson said:
“With significant price pressures on the horizon, November’s figures may signal the end of falling inflation.”
Official data released last week showed consumer price inflation rose by 2.3 per cent in October, largely reflecting a sharp rise in household energy prices.
The Bank of England (BoE) this month cut interest rates to 4.75 per cent – down from 5 per cent. However, it added that further cuts would only be gradual.
On Monday, Bank of England deputy governor Clare Lombardelli expressed concern that prices could rise faster than previously forecast.
Dickinson said prices will rise as shops increase staff costs, including in Finance Minister Rachel Reeves’ budget last month. On October 30, Reeves announced a £25 billion increase in employers’ social security contributions and a 6.7% rise in the minimum wage.
The BRC survey showed food inflation fell by 1.8 per cent from 1.9 per cent in October. Non-food prices fell 1.8 %, a smaller fall than October’s 2.1 % drop.
A separate survey by UK supermarket Asda, published on Monday, said a fall in household disposable income could curb Christmas spending.
