Shop Price annual inflation accelerated to 7.4% in November, up from 6.6% in October, according to the latest Shop Price Index from BRC-Nielsen IQ.

This was above the three-month average rate of 6.5%, and marks yet another record for shop price inflation since the index began in 2005.

Non-food inflation accelerated to 4.8%, up from 4.1% in October.

BRC chief executive Helen Dickinson OBE says: “Winter looks increasingly bleak as pressures on prices continue unabated. 

“While there are signs that cost pressures, and price rises, might start to ease in 2023, Christmas cheer will be dampened this year as households cut back on seasonal spending in order to prioritise the essentials. Retailers continue to do all they can to support their customers and ensure everyone can enjoy the festive season by fixing prices of many essentials, offering discounts to vulnerable groups, raising pay for their own people, and expanding their value ranges.” 

Mike Watkins, head of retailer and business insight, NielsenIQ, adds: "With prices still rising, the cost of Christmas will be higher this year and shoppers will be managing their budgets more closely than at any time since the start of the cost of living crisis. Retailers are now responding by offering seasonal savings and price cuts and will be hopeful of an uptick in shopper spend as we move into December."