Slight Acceleration in UK Shop Price Inflation in December Driven by Food Costs

London | EcoPulse24

UK shop price inflation recorded a modest increase in December 2025, reaching 0.7% year-on-year compared to 0.6% in November, marking the first acceleration in three months, according to industry data. The uptick was attributed to rising food costs during the holiday season.

The rise was driven by an acceleration in food price inflation to 3.3% annually, up from 3% the previous month. Fresh produce contributed to this trend, with inflation rising to 3.8% from 3.6%, while non-perishable food prices edged up to 2.5% from 2.4%.

Conversely, non-food prices continued their downward trajectory, experiencing a 0.6% annual contraction in December, unchanged from November, which helped limit the overall increase in shop prices.

Helen Dickinson, Chief Executive of the British Retail Consortium (BRC), said shop price inflation rose slightly in December as food prices accelerated, but shoppers still found good value in many holiday essentials, including vegetables, cheese, and beverages.

She added that falling energy prices and improved crop supplies are expected to help alleviate cost pressures in the period ahead.

EcoPulse24 Analysis
The limited rise in shop price inflation reflects a balance between seasonal food pressures and continued deflation in non-food goods. If supportive factors such as lower energy prices and improved supply chains persist, consumer inflation may remain relatively contained, giving policymakers more room for caution rather than rapid tightening.