Shop prices fall for 43rd consecutive month

Shop prices fell 1.7% in November, the 43rd consecutive month of declines and unchanged from October’s rate of deflation.

The latest British Retail Consortium (BRC) and Nielsen Shop Price Index also revealed non-food deflation accelerated to 2.3% during the month from the 2.1% recorded in the previous two months – deeper than the three-month average deflation of 2.2%.

Helen Dickinson, chief executive of the BRC, said the figures once again point to retailers’ “effectiveness” in controlling the inflationary pressure that continues to build through the devaluation of the pound.

“We have still yet to see any visible impact from the weaker pound on shop prices, but we do expect to see a gradual slowing of the rate of deflation,” she said.

“Increasingly value-driven and informed customers mean retailers will have to remain highly competitive. So while we may start to see cost pressures beginning to feed through into prices next year, we don’t expect any sudden spikes or surges, and the timing and extent of increases will differ from one category and retailer to the next.”