Prices in British stores have fallen less sharply this month, according to a survey by the British Retail Consortium on Tuesday, which suggests consumers could face new pressure on their spending power.
The annual store price deflation of 0.6% in the 12 months ending November follows a fall of 0.8% in the 12 months ending October, the BRC.
Its measure of store price inflation fell between May 2023 and July this year, after which it fell further into deflation, until today.
“With significant price pressures on the horizon, November's figures could mark the end of the fall in inflation,” said Helen Dickinson, chief executive of the BRC.
Official figures last week showed consumer price inflation rose to 2.3% in October, largely reflecting a rise in energy prices for households.
The Bank of England this month cut interest rates by 5% to 4.75%, but said it was likely to make further cuts only gradually.
On Monday, BoE Deputy Governor Clare Lombardelli expressed concern about the risk of stronger-than-expected price growth.
The BRC's Mr Dickinson said prices would rise as stores passed on rising staff costs, including in Finance Minister Rachel Reeves' budget last month.
On October 30, Reeves announced a £25 billion ($31.53 billion) rise in employers' social security contributions, as well as a 6.7% increase in the minimum wage.
The BRC survey showed that food inflation fell to 1.8% from 1.9% in October. Prices of non-food items fell 1.8%, a smaller drop than the 2.1% drop recorded in October.
According to another survey carried out on Monday by the British supermarket Asda, the fall in household disposable income and the rise in inflation could curb Christmas spending.
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