Sales boom amid highest price rise in 30 years

Britons are facing the biggest price rises in more than 30 years this Christmas after fears of widespread shortages sent people rushing to the shops earlier than usual this year, says a recent survey.

As per a survey of retailers by the CBI, the reports of empty shelves caused a high street sales boost in November, despite sharply escalating prices.

“Christmas seems to have come early for retailers, with clothing and department stores in particular seeing a big upward swing in sales volumes in November,” The Guardian quoted CBI economist Ben Jones as saying.

Most businesses were also increasing prices compared with the early summer, Jones said. The balance of firms passing on rising production costs moved up from +16 in May to +77, the highest level recorded by the sales barometer since 1991, report said.

Earlier this month, the Office for National Statistics reported consumer prices index inflation had risen 4.2 per cent over the year to October and the BoE said it was heading to 5 per cent next year.

While stock levels are said to be adequate for the first time in seven months, shoppers are making their festive purchases earlier this year, though retailers predicted the sales boom would continue into December.

“Overall, retailers are becoming more optimistic, with both employment growth and investment intentions picking up strongly. Cost pressures remain a very real concern, however,” Jones said.