Shop price inflation remained at 4.3% in December, the joint slowest pace in a year and a half, however, BRC chief executive Helen Dickinson warned of “obstacles on the road ahead” for retailers vying to keep prices down.
Last month, food price inflation fell to 6.7% from 7.7% in November, but non-food prices rose to 3.1% from 2.5% in the wake of a raft of Black Friday deals the prior month.
Dickinson said: “Households did have reason to celebrate as food inflation fell for the eighth consecutive month thanks to retailers’ efforts to bring down prices in the run-up to Christmas.
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In grocery, fresh food inflaiton slowerd further in December to 5.4%, down from 6.7% in November, which is its lowest level since May 2022.
Ambient food inflation decelerated to 8.4% in December, down from 9.2% in November.
NielsenIQ head of retailer and business insight Mike Watkins said that food promotions jumped to a 4 year high at the end of the year.
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