Shop price growth hits lowest point since June 2022

Based on the latest figures from the British Retail Consortium (BRC), this means shop price inflation is currently lower than the three-month average rate of 5.3%.  

Broken down by type, non-food inflation from 3.4% to 2.5% in November – below the three-month average rate of 3.5% – while food inflation saw a seventh consecutive deceleration, following from 8.8% to 7.8%. Fresh food inflation, meanwhile, slowed by more than a percentage point from 8.3% to 6.7% between October and November.  

Despite this, the BRC’s chief executive Helen Dickinson said consumers will face new headwinds in 2024, which will likely stall or even reverse the progress made thus far. She explained: “Shop price inflation eased for the sixth month in a row as retailers competed fiercely to bring prices down for customers ahead of Christmas.  

“Food inflation eased, thanks to lower domestic energy prices reducing overall input costs, particularly for dairy products. Ambient food inflation slowed but remained higher than fresh food due to a larger proportion of goods being imported to the UK and impacted by the weak pound.  

“While health and beauty products saw price cuts as retailers rush to shift stock before Christmas, clothing prices increased as some retailers continued to hold off on promotional activity. 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.”