Institution: UK retail prices saw a decrease in November, but it may be difficult to maintain the downward trend of inflation next year.

The British Retail Consortium said on Tuesday that British chain stores reported a decrease in inflation last month ahead of Black Friday promotions, but rising costs in 2026 mean retailers may struggle to maintain the downward trend in inflation. The BRC reported that shop prices had an annual inflation rate of 0.6% in November, compared to 1% in October. The food inflation rate dropped from 3.7% in October to 3%, with prices of fresh food seeing the largest decline since December 2020. However, prices of other categories such as oils, meats, and fish continue to rise as producers pass on higher costs to consumers. The Bank of England closely monitors food prices, as they play a crucial role in influencing public inflation expectations. Overall inflation in the UK fell to 3.6% in October.