Food inflation increased to 3.3%, up from November’s 3% and far outstripping wider shop price inflation of 0.7%, according to the British Retail Consortium (BRC) and NIQ data. Fresh food inflation increased higher still to 3.8%, up from 3.6% in November but below the three-month average of 3.9%. But deflation on products other than food remained steady at 0.6% amid widespread promotions across popular gifting categories, including toys, books, and home entertainment. BRC chief executive Helen Dickinson said: “Shop price inflation edged up in December as food prices rose at a faster rate. “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.

Source: The Times January 06, 2026 12:19 UTC