Food inflation slows as Black Friday sales dominate shops
Food inflation in the UK slowed in November after months of significant increases as Black Friday discounts filtered into Britain’s shops.
Food inflation decreased to three per cent year on year in November, against growth of 3.7 per cent in October and below the three-month average of 3.7 per cent, according to the British Retail consortium (BRC).
Non-food inflation i.e. goods like clothing, electronics and furniture, decreased to -0.6 per cent year on year in November, against a decline of -0.4 per cent in October.
“Black Friday deals began earlier than normal as competition between retailers hit fever pitch,” Helen Dickinson, chief executive of the BRC, said.
“While food price inflation remains elevated, widespread promotions meant price rises eased over the month, especially in dairy, fruit, breads, and cereals,” she added.
Food prices have been rocketing up as tax hikes and supply chain costs combine with environmental issues, with meat and chocolate prices particularly affected.
Mike Watkins, head of retailer and business insight at NIQ, said that while the figures were “good news” for shoppers, “inflationary pressures still remain, in particular within food”.
“The UK retail market is very competitive so retailers will need to keep any price increases as low as possible in the run up to Christmas, in order to entice shoppers to spend,” he said.
Keeping prices low, however, is a tough ask for shops struggling under the weight of business rates bills and already-low consumer spending.
While Black Friday shopping has been relatively strong so far, it hasn’t been the bumper season many retailers had been hoping for.
Dickinson added that shops face further “headwinds in the new year” including “rising employment costs which are likely to filter through to prices”.
“This could shake already weak consumer confidence and present further challenges for consumers in the year ahead.”