Shop Price annual inflation decelerated to +7.3% in December, down from +7.4% in November, according to the latest Shop Price Index from BRC-Nielsen IQ.
This was above the 3-month average rate of +7.1%, and left shop prices remaining near record highs.
Non-food inflation decelerated to +4.4% (down from +4.8% in November).
Helen Dickinson OBE, chief executive of the BRC, says: “It was a challenging Christmas for many households across the UK. Not only did the cold snap force people to spend more on their energy bills, but the prices of many essential foods also rose as reverberations from the war in Ukraine continued to keep high the cost of animal feed, fertiliser and energy.
"Non-food price rises eased as some retailers used discounting to shed excess stock built up during the disruptions to supply chains, meaning some customers were able to bag bargain gifts. The combined impact was that price increases overall plateaued, with the reduction in non-food inflation offsetting the higher food prices."
