Shop price inflation softens as Black Friday gets underway

(Sharecast News) - Shop prices fell in November, an industry survey showed on Tuesday, as retailers started to launch their Black Friday deals and promotions. According to the latest shop price monitor from the British Retail Consortium and NIQ, inflation decreased to 0.6% last month year-on-year, from 1% in October.

Non-food inflation fell to -0.6%, but food inflation - which has soared this year - was also lower. It came in at 3%, down on October's 3.7% and below the three-month average, also for 3.7%.

Fresh food inflation was 3.6%, down from October's 4.3%, while ambient food inflation softened to 2.4% from 2.9%.

Helen Dickinson, BRC chief executive, said: "Black Friday deals began earlier than normal, as competition between retailers hit fever pitch.

"While food price inflation remains elevated, widespread promotions mean price rises eased over the month, especially in dairy, fruit, breads and cereals.

"With Budget uncertainty behind us, retailers are hoping that consumer confidence rebounds in this crucial trading period."

However, Dickinson acknowledged that sector headwinds remained, including rising employment costs, "which are likely to filter through to prices" in the new year.

"This could shake already weak consumer and present further challenges for consumers in the year ahead," she said.

Mike Watkins, head of retailer and business insight at NIQ, said: "The UK retail market is very competitive, so retailers will need to keep any price increases as low as possible in th run up to Christmas, to entice shopper to spend."