The latest data points to a mixed end to 2025 for British shoppers. Although retailers offered widespread discounts during the festive period, the underlying cost of food kept the pressure on household finances. Rising prices in supermarkets have now become a central concern as families grapple with a higher cost of living.<\/p>\n\n\n\n
At the same time, the modest increase in shop price inflation outside of food signals that consumer habits<\/strong> may be shifting. Retailers, aware of shopper fatigue, stepped up promotions and absorbed some costs to maintain sales levels during the holiday season.<\/p>\n\n\n\n According to the British Retail Consortium (BRC<\/a>) and NIQ<\/a>, shop price inflation rose to 0.7%<\/strong> in December, a slight increase from 0.6%<\/strong> the previous month. The overall rise was largely due to a jump in food inflation, which reached 3.3%, up from November\u2019s 3.0%.<\/p>\n\n\n\n The data showed that fresh food prices climbed even higher, hitting 3.8%,<\/strong> compared with 3.6%<\/strong> the previous month. While this remains below the three-month average of 3.9%<\/strong>, it still reflects significant pressure on basic grocery items. In contrast, non-food prices declined by 0.6%, with retailers offering broad promotions on popular Christmas categories such as toys, books and entertainment.<\/p>\n\n\n\n Helen Dickinson<\/strong>, Chief Executive of the BRC, noted that while prices increased, consumers were still able to find value during the festive season. \u201cShoppers still found plenty of value across many Christmas essentials, including vegetables, cheeses, and alcohol, helping households to enjoy the festive season<\/em>,\u201d she said.<\/p>\n\n\n\n The shift in pricing patterns shows that retailers made a concerted effort to balance cost pressures with consumer affordability. Mike Watkins<\/strong>, Head of Retailer and Business Insight at NIQ, explained that while prices in some categories rose, retailers \u201cworked hard to encourage spending by keeping supply chain price increases to a minimum<\/em>\u201d and actively reduced food prices in December to support demand.<\/p>\n\n\n\nFood Inflation Continues to Drive Pressure despite Promotional Efforts<\/strong><\/h2>\n\n\n\n
Shopper Confidence Remains Subdued Heading into the New Year<\/strong><\/h2>\n\n\n\n