LONDON: Food prices and overall shop prices inflation in the UK picked up in December 2025, according to the British Retail Consortium (BRC), as retailers faced rising costs. Annual shop price inflation rose to 0.7%, slightly above November’s 0.6% increase, while food inflation climbed to 3.3% from 3.0% the previous month. Prices of non-food items continued to fall by 0.6%, matching November’s decline.
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BRC Chief Executive Helen Dickinson said retailers will continue efforts to keep prices down, noting that falling energy costs and improved crop supplies may ease some pressures. However, she warned that increased regulatory costs and public policy expenses could keep inflation “sticky.” Britain’s minimum wage is set to rise 4.1% to £12.71 per hour in April, adding to employers’ labor costs. The Bank of England monitors food prices closely, as they influence public inflation expectations. Britain’s overall consumer price inflation was 3.2% in November.
Meanwhile, UK consumer borrowing surged in November, the largest increase in two years, with a net rise of £2.08 billion ($2.79 billion), surpassing forecasts. The annual growth rate of consumer credit reached 8.1%, the fastest since May 2024. Analysts said the data suggests households maintained solid spending ahead of Finance Minister Rachel Reeves’ budget, despite speculation about potential tax hikes.
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Economists noted that stronger borrowing reflects sustained demand, while rising food costs could keep inflation pressures on essential items for UK consumers in early 2026.