Price increases in British shops showed a significant slowdown in November, offering some relief to consumers as the crucial Christmas trading period gets underway.
Black Friday Drives Slowdown in Price Rises
According to the latest data from the British Retail Consortium (BRC) and market researchers NIQ, overall shop prices were just 0.6% higher in November compared to a year ago. This marks a notable deceleration from the 1% annual increase recorded in October.
The easing is largely attributed to intense promotional activity around Black Friday, which began earlier than usual this year as retailers competed fiercely for customer spending. This competitive environment helped to apply downward pressure on prices across many categories.
Food Inflation Shows Mixed Picture
The trend was particularly evident in food prices, where inflation slowed to 3% from October's 3.7%. Widespread promotions led to softer price rises in several key areas, including:
- Dairy products
- Fresh fruit
- Bread and cereals
However, the report highlighted that inflation remained stubbornly elevated for certain essentials. Prices for oils and fats, as well as meat and fish, continued to rise at a more persistent rate, underscoring the ongoing cost pressures in parts of the supply chain.
Retailers Hope for Christmas Confidence Boost
BRC Chief Executive Helen Dickinson noted that with the uncertainty of the Autumn Budget now past, retailers are hopeful that consumer confidence will rebound in the vital final weeks before Christmas. She stated that retailers are committed to keeping prices as low as possible to help household budgets stretch further during the festive season.
"Retailers will continue doing everything they can to keep prices down and help customers' money go further this Christmas," Dickinson said.
Mike Watkins, Head of Retailer and Business Insight at NIQ, echoed this sentiment, acknowledging the good news for shoppers but cautioning that inflationary pressures persist, especially within food. He emphasised that the highly competitive UK retail market would force retailers to minimise any price increases in the run-up to Christmas to attract spending.
Warning Over Future Headwinds
Despite the current easing, industry leaders sounded a note of caution for the year ahead. Helen Dickinson warned of significant challenges on the horizon, particularly from rising employment costs which are likely to filter through to consumer prices in the new year.
"This could shake already weak consumer confidence and present further challenges for consumers in the year ahead," she cautioned, suggesting that the respite in November might be temporary.
The data, covering the period to Tuesday 2 December 2025, provides a snapshot of a retail sector navigating a delicate balance between competitive pricing to drive festive sales and the underlying economic pressures that threaten to squeeze margins and test consumer resilience in 2026.
