Responding to the latest CPI inflation figures, which show headline inflation easing to 3.2% and food inflation easing to 4.2%, Dr Kris Hamer, Director of Insight at the British Retail Consortium, said:
Headline inflation eased back considerably last month, driven by extensive discounting by retailers across Black Friday month. With many customers kicking off their Christmas shopping, there will have been relief to see the price of clothing and footwear fall on the year. And while high labour and commodity costs have pushed up food inflation over 2025, bigger promotions ahead of Christmas helped to bring this figure down. As a result, there were deals to be had, with bigger discounts seen for some meat products such as pork, lamb and chicken.
While retailers are trying to offer their customers great value in the run up to Christmas, Government imposed costs including the recent packaging tax, has made this increasingly difficult. Looking ahead to next year, it is vital that Government works with industry to create a policy environment that eases the cost and regulatory burden on the industry and allows retailers to invest more in both their prices and customer experience.
