UK shop prices grew at the fastest pace since records began in 2005 largely due to rising food and energy prices, the British Retail Consortium said Wednesday.
Shop price inflation accelerated to 7.4 percent in November from 6.6 percent in October. This was also above the three-month average rate of 6.5 percent.
Food prices advanced 12.4 percent annually after climbing 11.6 percent. This was the strongest inflation rate in the food category on record. Likewise, non-food inflation climbed to 4.8 percent from 4.1 percent in October.
“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,” said Helen Dickinson, chief executive of the BRC.
Mike Watkins, Head of Retailer and Business Insight, NielsenIQ, said “Retailers are now responding by offering seasonal savings and price cuts and will be hopeful of an uptick in shopper spend as we move into December.”