Inflation rises once again as shoppers remain cautious

For the period November 1 to 7, shop price inflation was higher than the previous month for what was the first time in 17 months, despite remaining largely in the negatives, new figures by the British Retail Consortium (BRC) have shown.

Shop price deflation was at 0.6 percent in November, up from deflation of 0.8 percent in the previous month, raising the question of if the end to falling inflation was upon us.

For the period, figures were slightly above the three-month average rate of -0.7 percent, while shop price annual growth remained at its lowest rate since September 2021.

While inflation fluctuated between food categories, non-food remained in deflation at -1.8 percent in November, up from -2.1 percent in the preceding month. This was above the three-month average rate of -2.0 percent.

In a statement, the BRC’s chief executive, Helen Dickinson, said that “while many retailers unwound some of their discounting” over this period, there were “still many bargains across fashion and furniture”.

Commenting on the figures, Dickinson noted: “With significant price pressures on the horizon [including changes to National Insurance Contributions, business rates and minimum wage, ed.], November’s figures may signal the end of falling inflation.”

She continued: “Retail already operates on slim margins, so these new costs will inevitably lead to higher prices. If the government wants to prevent this, it must reconsider the existing timelines for the new packaging levy, while ensuring any changes to business rates offer a meaningful reduction for all retailers as early as possible.”