Shop prices cooled again in November as retailers rolled out Black Friday discounts earlier than usual, offering bargains across categories like beauty, electricals and fashion.
New figures from the British Retail Consortium and NielsenIQ show that annual shop price inflation slipped to 0.6%, down from 1% in October. Month on month, prices nudged lower by 0.1%, following a 0.3% drop the previous month.
Non-food goods continued to drive the slowdown, with prices falling 0.6% year on year. Food inflation remained higher but eased noticeably, dropping to 3% from October’s 3.7%.
Both fresh and ambient foods saw price pressures soften: fresh items rose 3.6% over the year, while ambient goods increased 2.4%.
BRC chief executive Helen Dickinson said early Black Friday competition “hit fever pitch”, helping shoppers secure deals across several big-ticket categories.
She noted that food prices are still rising overall, but widespread promotions took the edge off increases in staples such as dairy, fruit, bread and cereals. Oils, fats, meat and fish, however, remain stubbornly expensive due to higher production costs.
Dickinson warned that rising employment costs could push prices higher in the new year, potentially weighing on confidence. NIQ’s Mike Watkins added that retailers will have to keep price rises in check if they want shoppers to spend during the Christmas rush.