UK shop price inflation rose slightly in early December as food prices increased at a faster pace.
According to the latest figures from the British Retail Consortium (BRC), which covered the period 1–7 December 2025, overall shop price inflation reached 0.7% year on year in December, up from 0.6% in November and in line with the three-month average.
The increase was driven by higher food inflation, which climbed to 3.3% year on year, compared with 3% the previous month.
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Fresh food inflation rose to 3.8% year on year in December, up from 3.6% in November, though it remained below the three-month average of 3.9%. Ambient food inflation also edged higher, reaching 2.5% year on year from 2.4% in November, and was also below its three-month average.
Non-food inflation stood at -0.6% year on year in December, unchanged from November and consistent with the three-month average, reflecting ongoing discounting and promotional activity across non-essential categories.
Helen Dickinson, chief executive of the BRC, said: “Shop price inflation edged up in December as food prices rose at a faster rate. Nonetheless, shoppers still found plenty of value across many Christmas essentials including vegetables, cheeses, and alcohol, helping households to enjoy the festive season.”
She said retailers leaned heavily on promotions to support spending during the key trading period, and “promotions were also widespread across popular gifting categories, including toys, books, and home entertainment.”
Dickinson added: “This year, retailers will continue to do all they can to keep prices down,” she said. “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.”
Mike Watkins, head of retailer and business insight at NIQ, said: “This Christmas, shoppers remained cautious, prioritising affordability. Retailers worked hard to encourage spending by keeping supply chain price increases to a minimum, and many food retailers reduced prices in December to support demand.
“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.”
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