Shop Price Index
MILD INFLATION IS BACK
Helen Dickinson OBE, Chief Executive, British Retail Consortium:
“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, they must work fast to ensure we get a transition period that gives retailers and their suppliers time to adapt to business outside the EU.”
Mike Watkins, Head of Retailer and Business Insight, Nielsen:
“Whilst there has been a small increase in retail prices since the end of the summer, shop price inflation remains below CPI. Prices continue to fall in non-food as shoppers are still cautious about spending. We have also seen deeper promotions ahead of Black Friday and the wider benefits from membership schemes also being messaged to shoppers. With the recent slowdown in sales growth across food retailing and the start of seasonal advertising, we can expect further price cuts as the battle for shopper loyalty this Christmas begins to heat up.”
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