Responding to the latest CPI inflation figures, which show headline inflation rising to 2.6% and food inflation rising 0.1 percentage point to 2.0%, Kris Hamer, Director of Insight of the British Retail Consortium, said:

Headline inflation rose once again last month. November’s figures were driven primarily by increased inflation rates of fuel and clothing and footwear. There was some welcome news for those shopping around early for Christmas presents, as furniture and household equipment remained in deflation, albeit not quite as low as in October. Food inflation did rise marginally though customers would have been glad to see the price of certain meats such as pork, lamb and beef fall in price on the month.

Retailers are doing their upmost to deliver an affordable Christmas for their customers in the face of global price pressures. For an industry that operates on low margins, £7 billion of increased costs from higher employer NI, National Living Wage, and new packaging levies, cannot simply be absorbed, despite retailers’ best efforts, and will inevitably lead to price rises, job losses, and more empty stores on our high streets. Retailers are watching the Government’s proposed changed to business rates closely, and it is essential that it leaves no store paying more in rates than before. By protecting shops, the government can support retailers as the invest in keeping shops open, and keeping prices down.

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