Talking Retail Grocery and product news for independent retailers
Overall shop prices reported deflation of 1.7% in the period, unchanged from the previous month.
British Retail Consortium chief executive Helen Dickinson said: “While food deflation slowed to 0.8% year-on-year compared with 1.2% in October, non-food deflation increased to 2.3% from 2.1%, which could be attributed to extended promotions in the run-up to Black Friday.
“The discrepancy between fresh and ambient food deflation continues. The rate of decline in fresh food eased to 1.2% from 2% in October, while deflation in ambient was almost unchanged at 0.1%.
“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.”
Nielsen head of retailer and business insight Mike Watkins said: “Shop prices are still falling and deflation will continue to at least the end of the year, as the result of the battle for the wallet of Christmas shoppers.
“Looking ahead, we can expect a slow return to shop price inflation during 2017 with fresh foods, some of which are also seasonal and weather dependent, likely to be impacted sooner when increased supply chain costs finally begin to filter through to retail prices.
“However, retailers will keep running promotions and campaigns to encourage retail spend and this will continue to help shoppers to save money next year.”
Source: BRC
