Shop Price Index
Price rises hit Christmas shopping
Helen Dickinson OBE, Chief Executive, British Retail Consortium:
November saw overall year-on-year prices increase for the first time in two and a half years, driven by rising food prices, and non-food deflation slowing. The impact of labour shortages, rising commodity prices and transportation costs have now very clearly taken their hold on consumer prices. With food prices rising, and particularly fresh food - which saw the highest inflation since 2019 - we may find some of our Christmas shopping a little more expensive this year. Food was also affected by a rise in global food costs where certain staples, such as vegetable oil, have doubled in price in the past two years.
With ongoing labour shortages throughout the supply chain expected to continue for some time, and no signs that rising costs of transport and commodities will subside, we expect the rate of inflation to accelerate over coming months. Retailers are doing all they can to mitigate the impacts for their customers, Government also must play its part and work with industry to find long-term solutions to the labour shortages as this will help to relieve cost pressures and protect the pockets of the British public who are already facing mounting costs from increasing energy prices and the looming rise in national insurance.
Mike Watkins, Head of Retailer and Business Insight, NielsenIQ:
The significant increases in energy and travel costs are adding pressure to household budgets and the remaining weeks of the Golden Quarter could be an uncertain time for shopper spend. NielsenIQ shopper research shows that 4 in 10 households feel that their spending is constrained and whilst inflationary pressures are now coming from both food and non-food, retailers continue to keep hold back increases in shop prices ahead of Christmas.
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