Shop prices fall again in November
Shop prices fell for the seventh consecutive month in November, dropping by 0.3% compared to the same month last year after easing 0.5% in October.
Figures released by the British Retail Consortium and Nielsen show that food inflation fell to its second lowest level since June 2010, slowing to 2.3% in November from 2.7% in October. Non-food reported annual deflation of 2% in November from 2.4% in October.
The drop in food inflation was driven mainly by fresh produce, which the BRC said indicated that retailers are offering plenty of good deals as shoppers start stocking up on seasonal fare. Prices also benefited from a better global harvest which has led to lower commodity prices.
Non-food, which has been deflationary since March, was fuelled mainly by promotions in fashion, furniture and electricals.
Never Miss a Retail Update!Helen Dickinson, BRC director general, said: “The seventh consecutive month of deflation is great news for hard-pressed households as Christmas gets closer, and confirms that retailers are reading current conditions well and matching the mood in their promotions and product offers.
“There are some encouraging signs in here for anyone starting to make some headway on their Christmas lists.”
Mike Watkins, head of retailer and business insight at Nielsen, added: “Across most of the industry it`s been a slower than usual start to Christmas trading and we expect retailers to keep promoting to help drive footfall. The good news for consumers is that inflationary pressures are less prevalent this year than in previous years. So with sales momentum now starting to build, we anticipate some good festive deals for the savvy Christmas shopper.”
