The CBI says shop sales have been resilient in the year to November as retailers head into the all-important Christmas rush.

The business group’s survey of 130 businesses showed employment was strong, with the rate of increased headcount expected to be faster than at any time since May 2002.

More businesses plan to invest in the next 12 months than not, while businesses also expect a slight improvement in their fortunes generally in the next three months.

But low inflation means the price of goods is under pressure and items’ average value is rising at its slowest pace since May 2009.

Barry Williams, Asda chief merchandising officer for food, said retailers were fighting the impact of a “demanding year” with price discounts and offers.

“We’re seeing encouraging signs that pressure on family budgets is letting up, and although there is some way to go with the broader economy, there can be some optimism for retailers and customers alike as we enter the crucial run up to Christmas.

“With prices under pressure and more firms adopting US-style Black Friday offers, retailers are expecting a festive boost next month and are certainly doing their best to put smiles on customers’ faces and make it easy on their pockets.”