Inflation has risen for the third month in five years this November as grocery price rises accelerated and the rate of deflation in non-food categories slowed.
Shop prices were up 0.1% year-on-year from the period from November 5 to November 9, in comparison with a 0.2% fall in prices the month prior.
According to the BRC-Nielsen Shop Price Index, this year-on-year price rise was exacerbated by food inflation picking up to 1.6% in November from 1.3% in October.
Fresh and ambient food both recorded increased prices year on year of 1.2% and 2.1% respectively.
Non-food prices were lower in November than they were the previous year due to clothing and electricals price declines keeping the category in deflationary territory overall.
However, the rate of deflation, 0.8%, was at its lowest since March 2013 due to other non-food categories recording modest year-on-year inflation.
The acceleration in food prices was spurred by a dip in inflation in 2017 and from higher global cereal prices pushing up the prices of several foods included in the index.
BRC chief executive Helen Dickinson said: “As we approach the Christmas season, the good news for consumers is that prices have remained almost unchanged in November. Furthermore, falls in the price of clothes and electrical goods will be a welcome bonus as the public prepare to do their Christmas present shopping.
“However, the low inflation presents a more difficult picture for retailers who are facing weak consumer demand and uncertainty surrounding Brexit. If the Government wishes to rebuild business confidence, it must work fast to ensure we get a transition period that gives retailers and their suppliers time to adapt to business outside the EU.”
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