FX.co ★ UK Shop Price Inflation Hits 5-Month Low

Shop price inflation in the UK decreased to 0.6% in November 2025, down from 1.0% in the previous month, as reported by the British Retail Consortium and NielsenIQ. This marks the second month in a row of declining inflation rates and represents the lowest figure since June. The November figure was below the three-month average of 1.0%, influenced by earlier and more aggressive Black Friday discounts. Food inflation also slowed to 3%, compared to 3.7% in October, falling short of its three-month average of 3.7%. Despite this decline, prices for items such as oils, fats, meat, and fish continued to be high. Additionally, non-food prices dropped further, with a decline of 0.6% compared to a 0.4% decrease in October, falling below the three-month average of a 0.3% drop. Helen Dickinson, Chief Executive of the BRC, expressed optimism that with budget uncertainties now resolved, retailer confidence could improve during the critical holiday trading period. However, she noted the potential for rising employment costs in the new year to impact prices, which could further affect the already delicate consumer mood.