BRC says inflation likely to remain ‘sticky’ in 2026
The British Retail Consortium has warned that inflation is likely to be “sticky” this year as retailers are impacted by public policy costs and regulation.
In its latest shop price monitor with NIQ, the organisation said shop price inflation picked up to 0.7% year-on-year in December following growth of 0.6% in November.
Subscribe to TRBHelen Dickinson, chief executive of the BRC, said: “This year, retailers will continue to do all they can to keep prices down. While falling energy prices and improved crop supply should help ease some cost pressures, increased public policy costs and regulation will likely keep inflation sticky.
“2026 must be the year that Government works with business to create a policy environment that reduces the pressures bearing down on the industry. This will enable retailers to invest more in keeping their prices down, benefitting households all across the country.”
Food price inflation increased to 3.3% year-on-year in the month compared to growth of 3% in November. Non-food inflation decreased to -0.6% against a decline of 0.6% a month earlier.
The BRC said shoppers still found value across many Christmas essentials including vegetables, cheeses and alcohol. There were also promotions in popular gifting categories, including toys, books, and home entertainment.
