The latest BRC-NielsenIQ Shop Price Index revealed that the fall in shop prices was very slightly above the three-month average rate of -0.7%. Shop price annual growth remained its lowest rate since September 2021.
Non-Food prices remained in deflation at -1.8% in November, up from -2.1% in the preceding month. This is above the three-month average rate of -2.0%. Inflation is in-line with levels last seen in mid-2021.
Elsewhere, food inflation slowed to 1.8% in November, down from 1.9% in October.
Helen Dickinson, CEO of the BRC, said: “November was the first time in 17 months that shop price inflation has been higher than the previous month, albeit remaining overall in negative territory.
“In non-food, while many retailers unwound some of their discounting, there are still many bargains across fashion and furniture. Customers looking to upgrade their electricals were able to pick up some great deals in early Black Friday.
“With significant price pressures on the horizon, November’s figures may signal the end of falling inflation. The industry faces £7 billion of additional costs in 2025 because of changes to Employers’ National Insurance Contributions, business rates, an increase to the minimum wage and a new packaging levy. 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.”