Shop price inflation remained flat in December after food prices declined for the eight consecutive month.

According to figures from the British Retail Consortium (BRC), shop price annual inflation was unchanged at 4.3 per cent during the month, with shop price growth at its lowest level in June 2022.

Over the four-week period, non-food inflation rose to 3.1 per cent in December, up from 2.5 per cent in November.

Food inflation decreased to 6.7 per cent in during the month, down from 7.7 per cent in November.

"Households did have reason to celebrate as food inflation fell for the eighth consecutive month thanks to retailers’ efforts to bring down prices in the run-up to Christmas," said Helen Dickinson, chief executive, BRC. "There was cause for merriment as prices of wine, port and sherry fell on the month.

"Non-food products had a more challenging December, with price inflation rising again following retailers’ investment in November Black Friday discounting and ahead of the January sales.”

But she warned that while retailers will "do all they can" to keep prices down in 2024, new border checks for EU imports and hundreds of millions more on business rates bills from April could impact pricing.

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