The Office for National Statistics (ONS) has released the latest data on consumer price inflation and retail sales, finding that food sales had increased as CPI reached 2.6%.
The Consumer Prices Index (CPI) rose by 2.6% in the 12 months to November 2024, up from 2.3% in the 12 months to October, but ONS said this was “well below” its recent peak of 11.1% in October 2022.
The Consumer Prices Index including owner occupiers’ housing costs (CPIH) rose by 3.5% in the 12 months to November 2024, up from 3.2% in the 12 months to October. On a monthly basis, CPIH rose by 0.2% in November 2024, compared with a fall of 0.1% in November 2023.
For the 12 months to November 2024, the CPI for food and non-alcoholic beverages was 2%, up from 1.9% in October 2024.
ONS found that food stores sales volumes had increased for the first time in three months, rising by 0.5% in November 2024, most strongly within supermarkets.
“£7 billion of increased costs from higher employer NI, National Living Wage, and new packaging levies, cannot simply be absorbed.”
Kris Hamer, director of insight at the British Retail Consortium, said: “Headline inflation rose once again last month. Food inflation did rise marginally though customers would have been glad to see the price of certain meats such as pork, lamb and beef fall in price on the month.
“Retailers are doing their upmost to deliver an affordable Christmas for their customers in the face of global price pressures. For an industry that operates on low margins, £7 billion of increased costs from higher employer NI, National Living Wage, and new packaging levies, cannot simply be absorbed, despite retailers’ best efforts, and will inevitably lead to price rises, job losses, and more empty stores on our high streets.
“Retailers are watching the Government’s proposed changed to business rates closely, and it is essential that it leaves no store paying more in rates than before. By protecting shops, the Government can support retailers as they invest in keeping shops open, and keeping prices down.”
