Shop price inflation fell to its lowest in 17 months in November as retailers stepped up discounting ahead of the festive shopping season.
Shop prices were 4.3% higher than last November, down from October’s 5.2% rise, and the lowest inflation since last June, according to the latest BRC-NielsenIQ Shop Price Index shows.
Food price rises slowed to 7.8% from October’s 8.8%, due to lower domestic energy prices reducing overall input costs, particularly in areas such as dairy products.
Non-food inflation fell to 2.5% down from 3.4% last month.
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However, BRC chief executive Helen Dickinson warned that business rate rises and National Living Wage increases would likely stall or even reverse progress.
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.”
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