Shop price inflation rises in December
Shop price inflation edged up in December as price rises continued to add pressure to household budgets.
The figures indicate shop price inflation picked up to 0.7% year-on-year in December, against growth of 0.6% in November. This is in line with the three-month average of 0.7%.
Non-Food inflation decreased to -0.6% year-on-year in December, against a decline of 0.6% in November. This is in line with the three-month average of -0.6%.
Helen Dickinson, Chief Executive of the BRC, said: "Shop price inflation edged up in December. Nonetheless, shoppers still found plenty of value across many Christmas essentials. Promotions were also widespread across popular gifting categories.
"This year, retailers will continue to do all they can to keep prices down. While falling energy prices and improved crop supply should help ease some cost pressures, increased public policy costs and regulation will likely keep inflation sticky.
"2026 must be the year that Government works with business to create a policy environment that reduces the pressures bearing down on the industry. This will enable retailers to invest more in keeping their prices down, benefitting households all across the country."
Mike Watkins, Head of Retailer and Business Insight, NIQ, said: "This Christmas, shoppers remained cautious, prioritising affordability. Retailers worked hard to encourage spending by keeping supply chain price increases to a minimum.
"Looking ahead to 2026, although inflation has peaked, weak shopper sentiment is likely to persist, so shoppers will continue to seek out lower prices and promotional offers."
