Warning that higher costs facing retailers will 'inevitably' increase prices

Figures amusement important bargains remained successful spot crossed fashion, furnishings and electricals successful aboriginal Black Friday sales.

The 17-month tally of steadily falling store prices successful the UK ended successful November, arsenic the British Retail Consortium (BRC) warned that higher costs facing retailers volition "inevitably" summation user prices.

Shop prices are 0.6% down from past year, yet they've crept up since October, marking the archetypal month-on-month ostentation emergence successful 17 months, according to the latest BRC-NielsenIQ Shop Price Index.

Fresh nutrient is getting pricier, with seafood and beverage starring the complaint owed to soaring wintertime import costs and dismal harvests. Coffee prices got a little respite, but with planetary legume prices nudging all-time highs, this inclination looks to beryllium short-lived.

Food ostentation arsenic a full cooled somewhat to 1.8%, down from 1.9% successful October. Meanwhile, non-food items remained cheaper than past twelvemonth by 1.8%, a flimsy upturn from October's 2.1%, contempt immoderate retailers scaling backmost discounting activities.

However figures amusement important bargains remained successful spot crossed fashion, furnishings and electricals successful aboriginal Black Friday sales. BRC main enforcement Helen Dickinson observed: "November was the archetypal clip successful 17 months that store terms ostentation has been higher than the erstwhile month, albeit remaining wide successful antagonistic territory.

"With important terms pressures connected the horizon, November’s figures whitethorn awesome the extremity of falling inflation. The manufacture faces £7billion of further costs successful 2025 due to the fact that of changes to employers’ nationalist security contributions, concern rates, an summation to the minimum wage and a caller packaging levy. Retail already operates connected slim margins, truthful these caller costs volition inevitably pb to higher prices."

Mike Watkins, caput of retailer and concern penetration astatine NielsenIQ, observed: "Shoppers are inactive being cautious by buying savvy for the essentials and holding backmost their discretionary spend, truthful the little level of ostentation should assistance sentiment up of Black Friday promotions."

He besides added: "And with little ostentation than this clip past year, galore nutrient retailers are extending offers and discounts to assistance income momentum successful December."