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Consumer Research


The rise before a fall

The rise before a fall

The BRC Shop Price Index (SPI) for November shows overall prices were 1.8 per cent higher than in November 2005.


This is the fifth consecutive month the inflation rate has shown a year-on-year increase, and is the largest rise since April 2004, when the rate was 1.84per cent.


This higher inflation rate was driven by food, which showed an increase of 5.01per cent, the largest rise since the SPI began in 1997.


However, this month's inflation rate is set against weak comparatives, with the non-food index in 2005 showing deflation, with a rate of – 1.64 per cent, and an overall inflation rate of - 0.80 per cent.


Despite this increase, the SPI remains lower than both the CPI and RPI.

Since October, the overall index showed that shop prices rose by 0.43 per cent, due to an increase in the food and non-food indices, rising by 0.17per cent and 0.55 per cent respectively.


The rise across the board came as mid-season sales ended, with promotional activity limited to one-day spectaculars and special events.


Retailers are taking a breather from cutting prices before a period of sustained promotional activity, starting with the Christmas promotions in December, followed by the traditional New Year sales in January.

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