"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. This year, retailers will continue to do all they can to keep prices down. 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."
"In the period between 1 and 7 December 2025 shop price inflation picked up to 0.7% year on year in December, against growth of 0.6% in November. This is in line with the 3-month average of 0.7%. Non-Food inflation decreased to -0.6% year on year in December, against a decline of -0.6% in November. This is in line with the 3-month average of -0.6%."
Shop price inflation increased to 0.7% year‑on‑year in early December, up from 0.6% in November and matching the three‑month average. Non‑food inflation remained negative at -0.6% year‑on‑year and aligned with its three‑month average. Food inflation rose to 3.3% year‑on‑year, driven by fresh food at 3.8% and ambient food at 2.5%, with fresh and ambient food slightly below their three‑month averages. Shoppers found value across many Christmas essentials and retailers used widespread promotions across gifting categories. Falling energy prices and improved crop supply may ease some cost pressures, but higher public policy costs and regulation could keep inflation persistent. Government and business cooperation in 2026 is urged to reduce industry pressures and enable retailer investment to help keep prices down for households.
Read at London Business News | Londonlovesbusiness.com
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