From Morningstar:

UK shop price inflation remained steady at 4.3% in December, the lowest in 18 months, but the British Retail Consortium (BRC) warned that cost pressures could halt the easing trend in 2024. The BRC-NielsenIQ shop price index indicated a 4.3% increase from the previous year, slower than the three-month average of 4.6% and the lowest since June 2022.

Food price inflation decreased to 6.7% in December from 7.8% in November. Fresh food prices had a 5.4% annual rise in December, down from 6.7% the previous month, while ambient food inflation slowed to 8.4% from 9.2%.

Non-food price inflation accelerated to 3.1% in December from 2.5% in November, the slowest for the category since September 2022, BRC noted.

Overall shop prices in the UK increased by 0.4% in December from November, with non-food prices rising by 0.5% and food prices remaining unchanged.

BRC chief executive, Helen Dickinson, stated that non-food prices rose in December, following discounts for the Black Friday event in November and ahead of the January sales. Retailers face challenges in 2024 due to new border checks for EU imports and increased business rates from April.



Read more: Food Price Inflation Starts to Cool