BRC-Nielsen shop price index for November 2012 reveals food price inflation increases
Overall shop price inflation rate is the same as October’s but food price rises are accelerating
Overall shop price inflation was unchanged at 1.5% in November. Food inflation accelerated to 4.6% in November from 4.0% in October. Non-food prices fell 0.3% in November after being broadly flat in October.
Stephen Robertson, British Retail Consortium Director General, said: “The overall shop price inflation rate is the same as October’s but food price rises are accelerating. Costs for commodities such as wheat and corn have eased off since peaking earlier in the year but these pressures, coupled with the impact of poor harvests, are continuing to filter through to fresh foods, with meat, fish and vegetables hit particularly hard.
“The fierce competition to secure Christmas spending should shield customers from the full impact of rising costs and ensure that they still get a good deal on seasonal fare.
Never Miss a Retail Update!“Non-food prices have been down year-on-year for nine months of 2012, with November’s downward trend driven mainly by clothing and electrical goods. This should help many people’s Christmas present budgets go further, but it will also eat into retailers’ margins during this crucial trading period.”
Mike Watkins, Senior Manager, Retailer Services, Nielsen said: “With Christmas trading underway, non-food retailers are already discounting in order to drive footfall and supermarket retailers will be concerned about the inflationary pressures that are building, and whether this impacts the motivation of the already cautious consumer. With weak consumer spending, all retailers will now be reviewing how much more to use promotional activity to encourage shoppers to buy over the next three weeks.”
