Retailers have been warned they face a ‘bleak winter’ as shop price inflation rose to record levels.
The British Retail Consortium-Nielsen Shop Price Index jumped from 6.6% to 7.4% in November, the highest level since the index began in 2005.
Food inflation jumped from 11.6% to 12.4%, with fresh food up 14.3%: both records. Non-food prices rose from 4.1% to 4.8%.
ONS figures puts retail furniture inflation at 13.7% and flooring at 8.7% respectively.
Helen Dickinson OBE, Chief Executive of the British Retail Consortium, said:
‘Winter looks increasingly bleak as pressures on prices continue unabated. Food prices have continued to soar, especially for meat, eggs and dairy, which have been hit by rocketing energy costs, and rising costs of animal feed and transport. Coffee prices also shot up on last month as high input costs filtered through to price tags. Christmas gifting is also set to become more expensive than in previous years,’ says Helen Dickinson, BRC chief executive.
‘While there are signs that cost pressures, and price rises, might start to ease in 2023, Christmas cheer will be dampened this year as households cut back on seasonal spending in order to prioritise the essentials.’
‘With prices still rising, the cost of Christmas will be higher this year and shoppers will be managing their budgets more closely than at any time since the start of cost-of-living crisis,’ says Mike Watkins, NielsenIQ head of retailer and business insight.
