// Shop price inflation rose to a record high of 7.4% in November, with food inflation surging to 12.4%, also the highest since records began
// BRC chief executive Helen Dickinson warned of a “bleak winter” ahead
The BRC has warned of a bleak winter ahead as shop price inflation jumped 7.4% in November, the highest level since records began in 2005.
The increase follows the 6.6% increase last month, according to the BRC-Nielsen Shop Price Index.
Food inflation was firmly in double-digit territory at 12.4% in November, the highest level on record, up from 11.6% in October. Fresh food was up 14.3%, again a record high.
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Non-food prices also rose but at a lower level of 4.8%, however, this is still an acceleration from the 4.1% experienced last month.
BRC chief executive Helen Dickinson OBE said: “Winter looks increasingly bleak as pressures on prices continue unabated.
“Food prices have continued to soar, especially for meat, eggs and dairy, which have been hit by rocketing energy costs, and rising costs of animal feed and transport. Coffee prices also shot up on last month as high input costs filtered through to price tags.”
Dickinson pointed out that Christmas gifting is also set to become more expensive than in previous years, with sports and recreation equipment seeing particularly high increases. This is set to hit shoppers’ Christmas shopping budgets.
She added: “While there are signs that cost pressures, and price rises, might start to ease in 2023, Christmas cheer will be dampened this year as households cut back on seasonal spending in order to prioritise the essentials.
“Retailers continue to do all they can to support their customers and ensure everyone can enjoy the festive season by fixing prices of many essentials, offering discounts to vulnerable groups, raising pay for their own people, and expanding their value ranges.”
NielsenIQ head of retailer and business insight Mike Watkins added: “With prices still rising, the cost of Christmas will be higher this year and shoppers will be managing their budgets more closely than at any time since the start of cost-of-living crisis.
“Retailers are now responding by offering seasonal savings and price cuts and will be hopeful of an uptick in shopper spend as we move into December.”
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