Retailers have warned they will be forced to raise prices as they bid to balance the books following the various tax hikes in the chancellor's Budget.
Businesses will have to deal with increased national insurance contributions, a minimum wage rise and a new levy related to packaging.
And the British Retail Consortium has now warned the changes will also hit consumers in the pocket and shops are left with no choice but to up prices to combat their soaring costs.
The Times reports Helen Dickinson, chief executive of the BRC, said: “With significant price pressures on the horizon, November’s figures may signal the end of falling inflation.
"The industry faces £7billion of additional costs next year because of changes to employers’ national insurance contributions, business rates, an increase to the minimum wage and a new packaging levy.”
Dickinson is asking chancellor Rachel Reeves to revisit the timelines for the planned packaging levy and to reform business rates.
Dickinson called on Rachel Reeves, the chancellor, to reform the business rates regime and reconsider the current timelines in place for the packaging levy.
Research from the BRC and NielsenIQ shows shop prices fell 0.6% over the year to November, but rose 0.8% over the 12 months to October.