Shop price deflation eased to 0.6% in November, slightly rising from October’s 0.8%, as reported by new data.
- The BRC-NielsenIQ Shop Price Index shows a small decline compared to the three-month average.
- Non-food prices continue to deflate, although at a slower rate of -1.8% in November.
- Food inflation saw a minor decrease, registering 1.8% down from 1.9%.
- Economic forecasts suggest potential price hikes due to upcoming business costs.
A recent report by the BRC-NielsenIQ Shop Price Index indicates a slight change in shop price deflation, which was recorded at 0.6% in November, marking an increase from the 0.8% deflation in the previous month. This change slightly exceeds the three-month average, hinting at a potential stabilization of prices.
Non-food items saw continued deflation at a rate of -1.8% in November, albeit a decrease from -2.1% in October. This rate remains above the average of -2.0% over the past three months, maintaining the trend of deflation since mid-2021.
Similarly, food inflation experienced a modest decrease to 1.8% from the previous month’s 1.9%. These figures reflect a minor but notable change, indicating a slow adjustment in food prices after long periods of higher inflation.
Helen Dickinson, CEO of the BRC, remarked on November’s pricing, stating it was the first time in 17 months that shop price inflation rose compared to the previous month, despite staying negative overall. She highlighted ongoing bargains, especially in fashion and furniture, due to some retailers relaxing their discounts.
Looking ahead, the retail sector is bracing for significant cost increases in 2025, driven by changes in Employers’ National Insurance Contributions, business rates, minimum wage hikes, and a new packaging levy. These could lead to higher prices if current policies remain unchanged.
The current economic climate indicates the potential for price increases if upcoming costs are not mitigated.
