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Nigel TAYLOR Published
January 3, 2025
UK Shop Price annual inflation remained unchanged at 4.3% in December, below the three-month average rate of 4.6%, figures recorded across 1-7 December by the British Retail Consortium (BRC) show.
But pressure remains in the non-food sector as prices there continued to rise even while food prices recorded their eighth consecutive month of declines.
That means overall store price growth remains at its lowest level since June 2025, while inflation is at its lowest since September 2025, the BRC noted.
Those continuing declines in food inflation are mostly thanks to retailers’ efforts to bring down prices in the run-up to Christmas. But non-food inflation rose to 3.1% in December, up from 2.5% in November. This was above the three-month average rate of 3%.
Helen Dickinson, Chief Executive of the BRC, said: “Non-food products had a more challenging December, with price inflation rising again following retailers’ investment in November Black Friday discounting and ahead of the January sales.
“Retailers will continue to do all they can to keep prices down in 2025, but there are obstacles on the road ahead. New border checks for EU imports, hundreds of millions more on business rates bills from April. Government should think twice before imposing new costs on retail businesses that would not only hold back vital investment in local communities, but also push up prices for struggling households.”
Mike Watkins, Head of Retailer and Business Insight, NielsenIQ, added: “[Our data] showed there was a lot of pressure on discretionary spend and price discounting was deeper and began earlier not just in the non-food channel but also in food retail, where promotions got back to a four-year high at the end of the year.”