Shop prices were 1.1 per cent higher in November than they were a year ago, and prices are now 4.3 per cent higher than a year ago.

According to the BRC-Nielsen Shop Price Index (SPI), the inflation is continuing to come from food. Non-food prices continued to fall, with the rate of deflation increasing to 0.4 per cent.

BRC director-general Kevin Hawkins said: “While commodity inflation is still driving up food prices, which grocers are doing their best not to pass on to the consumer, overall shop price inflation is low and going a long way to help the Bank meet its 2 per cent inflation target. With a severe slowdown in consumer spending likely in the new year, the next rate move should be a cut.”