Warnings have emerged that a trend of deflation across UK shops could be coming to an end after price declines slowed this month.
Shop prices fell by 0.6% in November, against October’s 0.8% drop, according to the British Retail Consortium (BRC).
This marked the first time in almost a year and a half that shop price inflation increased month on month.
“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,” BRC chief executive Helen Dickinson stated.
“With significant price pressures on the horizon, November’s figures may signal the end of falling inflation.”
Non-food product prices declined by 1.8% over the month, though this was slower than the 2.1% drop seen in October.
Food inflation slowed to 1.8% from October’s 1.9% in the meantime.
Dickinson warned the industry faced a £7 billion uplift in costs on the back of last month’s Budget, which implemented an employer National Insurance Contribution hike and higher minimum wages.
“Retail already operates on slim margins, so these new costs will inevitably lead to higher prices,” she said.