Shop price inflation edged up in December, driven by rising food prices, according to data from the British Retail Consortium (BRC) and Nielsen IQ Shop Price Monitor.

Shop price inflation rose to 0.7% year-on-year (YOY) in December 2025, up from 0.6% in November, in line with the three-month average, and driven by higher inflation across all food categories in the month.

Food inflation increased to 3.3% YOY in December, up from 3.0% in November, including a 3.8% increase in Fresh Food prices, up from 3.6%, and a 2.5% rise in Ambient Food inflation, up from 2.4% in November.

Non-Food inflation remained in deflation at -0.6% year on year in December, unchanged from November.

“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. Promotions were also widespread across popular gifting categories, including toys, books, and home entertainment,” commented Helen Dickinson, Chief Executive of the BRC.

“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,” commented Mike Watkins, Head of Retailer and Business Insight, NIQ.

While falling energy prices and improved crop supply should help ease some cost pressures, Dickinson warned that 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,” added Dickinson.