The figures, released today by the British Retail Consortium, revealed that the rate of inflation across all sectors was 0.3 per down from October’s figure.
Shop prices in November were 2.7 per cent higher than the same period in 2007, compared with October’s figure which grew by 3.0 per cent like-for-like.
The drop in the rate of inflation has been seen in all sectors.
Food price inflation
November’s rate for food prices was 7.1 per cent year on year compared with a 7.5 per cent rise in October.
The figures released today has confirmed predictions of further price drops on the high street.
The Government’s 2.5 per cent drop in VAT last month has been met with mixed reactions from retailers, but many are now also calling for a further drop in interest rates to boost consumer spending after the 1.5 per cent cut announced by the Bank of England in November.
British Retail Consortium director-general Stephen Robertson said: “High-profile discounting and falling prices for key commodities have brought overall shop price inflation down even more from its peak in August. The rate of food inflation has fallen by nearly a third in just three months.
“The VAT cut will contribute to reducing inflation further in December but can't make a big difference to consumer spending on its own. The Bank of England should have the courage to cut rates by another whole point.”