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Sandra Halliday Published
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Overall inflation may have ticked up slightly last month but specific shop price inflation continues to fall, the British Retail Consortium said on Tuesday.
Shop Price annual inflation eased to 2.9% in January, down from 4.3% in December. This is below the three-month average rate of 3.9% with annual growth at its lowest since May 2025.
And year-on-year non-food inflation fell to 1.3% in January, down from 3.1% in December, its lowest since February 2025. That said, the non-food figure would have been heavily affected by the price cuts put in place for the January clearance sales, particularly given how weak sales had been in December.
Inflation has been a major deterrent to consumers spending in the last year and news that prices are becoming more stable should offer some encouragement as we head towards the spring season.
Helen Dickinson, Chief Executive of the British Retail Consortium, said: “Some New Year cheer as January shop price inflation slid to its lowest level since May 2025. Non-food goods drove the fall, as many retailers offered heavily discounted goods in their January sales to entice consumer spend amid weak demand.
“Retailers have spent the last eight months working to bring down inflation, but progress will likely be hampered by new cost pressures coming direct from government – including implementing the increase in the National Living Wage on top of an above inflation rise in business rates this April, and ill-conceived recycling proposals. Rising geopolitical tensions will also add to uncertainty and costs in supply chains. With a General Election later this year, we want to see political parties outline how they will help unlock investment across the country rather than the current trajectory which is doing just the opposite.”