Retailers are putting up prices the fastest since 1990, according to industry figures, which add to evidence of a cost of living squeeze this winter.
Consumers starting their Christmas shopping early because of fears of supply disruption have boosted sales, according to a CBI survey.
The report found that clothing and department stores saw big upward swings in November.
In the three months to November, the balance of retailers reporting higher selling prices stood at 77%, according to the CBI.
The survey said that prices are expected to rise at a similar pace next month.
Retailers seem to be passing on to growing cost pressures as they grapple with economy-wide issues such as labour shortages and supply chain woes.
Sales in November were better than expected for the time of year since September 2015 and were better than expected.
The survey of 51 major retailers also found that year-on-year retail sales growth has accelerated this month, but internet sales fell for the first time on survey records going back to 2001.
Last year when COVID 19 restrictions forced shoppers off the high streets and onto their computers and mobile devices, it compares to what happened last year.
There were signs that retailers' efforts to increase availability of goods in the face of supply chain concerns were paying off, with stock levels generally adequate for the first time after six months when they have been falling well short of demand.
CBI lead economist Ben Jones said that Christmas seems to have come early for retailers, with clothing and department stores seeing a big upward swing in sales volumes in November.
Consumers are beginning to start their Christmas shopping early because of reports of supply chain disruptions.
There are signs that retailers efforts to help avoid any festive disappointments may be paying off, with stock levels seen as adequate for the first time in seven months.
Employment growth and investment intentions are picking up strongly, with retailers becoming more optimistic.
The price of the products and services has gone up at the fastest pace since 1990, and cost pressures are a real concern. Retail sales increased in October for the first time in six months, according to the latest official data.
Bank of England officials will be watching for signs of buoyant demand as they weigh up whether to go for a pre-Christmas interest rate hike when they meet next month.