UK shoppers are set to face the biggest Christmas price rises in over 30 years after the “angst of widespread shortages” sent people rushing to the shops this November, according to the latest CBI quarterly Distributive Trades Survey.
It revealed that consumer concerns about a lack of stock this month has driven price rises across a number of companies, with stock levels in the distribution sector seen as ‘too low’.
The CBI said year-on-year retail sales growth increased at a faster rate than October (+39% from +30%) and is expected to pick up again in the year to December (+56%).
Ben Jones, CBI lead economist, said: “Christmas seems to have come early for retailers, with clothing and department stores in particular seeing a big upward swing in sales volumes in November.
“It seems likely that reports of supply chain disruptions prompted consumers to start their Christmas shopping early. Cost pressures remain a very real concern, however, with selling prices growing at the fastest pace since 1990.”