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The BRC has warned of a “bleak” winter ahead after shop price annual inflation accelerated to 7.4% in November, up from 6.6% in October.
This 7.4% is above the three-month average rate of 6.5% and marks another record for shop price inflation since the index started in 2005.
Food inflation increased to 12.4% in November, up from 11.6% in October, again above the three-month average rate of 11.5%. This is the highest inflation rate in the food category on record.
Fresh food inflation strongly accelerated in November to 14.3%, up from 13.3% in October, and above the three-month average rate of 13.1%.
Meanwhile, ambient food inflation was at 10.0% in November, up from 9.4% in October, higher than the three-month average rate of 9.2% and the fastest rate of increase in the ambient food category on record.
Non-food inflation accelerated to 4.8% in November, from 4.1% in October, slightly ahead of the three-month average rate of 4.0%.
Helen Dickinson OBE, CEO of the BRC, 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, with sports and recreation equipment seeing particularly high increases.”
Dickinson added: “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.”
Mike Watkins, head of retailer and business insight, NielsenIQ, said: “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 the cost-of-living crisis. 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.”
