// Shop prices fall for the 6th straight month in November, according to BRC-Nielsen Shop Price Index
// Overall prices fell 0.5% compared to a decrease of 0.4% in October
// Non-food prices fell 1.6% while food inflation eased to 1.4& compared to 1.6% in October
Shop prices have fallen for a sixth consecutive month as retailers enticed customers with ever deeper price cuts to offset political upheaval, new figures show.
Overall prices fell 0.5 per cent in November compared to a 0.4 per cent decrease in October, as retailers lured shoppers with discounts amid economic and political uncertainty, according to the latest BRC-Nielsen Shop Price Index.
Non-food prices fell by 1.6 per cent while food inflation eased to 1.4 per cent from 1.6 per cent in October.
READ MORE:
- UK retail sales stabilise ahead of Christmas – CBI figures
- October retail sales grow at weak pace amid ongoing Brexit uncertainty
- Discounting drives give October retail sales a boost
Prices were driven down in part by a strong crop of fresh fruit in the UK and a fall in the global price of dairy.
“The economic and political uncertainty has weakened demand for non-essential items,” British Retail Consortium chief executive Helen Dickinson said.
“As a result, retailers have pushed for even deeper price cuts to encourage consumers to open their wallets.
“While consumers will welcome the fall in prices in the run up to Christmas, there are various factors which could push food prices up in the longer term.
“These include the impact of flooding on the yields of many root vegetables and the rising global prices of meat.
“However, the biggest threat to future prices remains the risk of a chaotic no-deal Brexit pushing up the costs of EU imports, which account for 30 per cent of the food we consume.
“The next government should aim to provide clarity on the UK’s future relationship with the EU as soon as possible.”
Nielsen head of retailer insight Mike Watkins said: “With fragile consumer confidence, retailers are keeping price increases to a minimum to encourage consumers to spend and there is little inflationary pressure coming from the high street.
“With Black Friday discounts and promotions already giving shoppers further savings, any new pricing initiatives to drive demand in the final weeks up to Christmas will need to be balanced to protect margins.”
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