Overview
- Industry data from the BRC and NIQ show annual shop price inflation rose to 0.7% in December, up from 0.6% in November.
- Food inflation accelerated to 3.3% with fresh food at 3.8%, while non‑food prices fell 0.6% year on year as retailers leaned on discounts and promotions.
- Shoppers traded down to supermarkets’ basic ranges over Christmas, and many grocers cut selected prices to support demand.
- Retail leaders warn inflation may stay sticky due to higher policy costs and labour pressures, with the minimum wage set to rise 4.1% to £12.71 in April 2026.
- Headline CPI eased to 3.2% in November, and the Bank of England expects inflation to return to 2% by spring as it monitors food prices’ influence on expectations.