Households across the United Kingdom who carried out a major festive food shop during December have been issued a stark warning, following the release of new inflation figures.
Festive Food Costs Outpace General Inflation
Data published by the British Retail Consortium (BRC) reveals that food inflation accelerated to 3.3% in December. This significant increase dramatically outstripped the wider shop price inflation, which stood at just 0.7% for the same period.
This spike meant that families spending on traditional Christmas items like turkey, pigs in blankets, and all the trimmings in the run-up to the 25th were paying considerably more. The situation suggests many households may now find their finances more stretched in the aftermath of the festive season.
Fresh Food and Retailer Responses
The pressure was even more acute for fresh produce. Fresh food inflation rose to 3.8% in December, up from 3.6% in November, although it remained slightly below the three-month average of 3.9%.
This warning comes at a time when major supermarkets, including Aldi, Lidl, Morrisons, Sainsbury's, Tesco, and Asda, have engaged in a fierce price war. In a bid to attract customers, many cut-price and budget rivals slashed the cost of Christmas vegetables and other seasonal goods.
Expert Analysis and the 2026 Outlook
BRC Chief Executive Helen Dickinson commented on the figures, stating: “Shop price inflation edged up in December as food prices rose at a faster rate. Nonetheless, shoppers still found plenty of value across many Christmas essentials including vegetables, cheeses, and alcohol, helping households to enjoy the festive season.”
Looking forward, Dickinson added that retailers will continue working to keep prices low. She noted that falling energy costs and improved crop supply should help, but warned that increased public policy costs and regulation could keep inflation ‘sticky’.
Mike Watkins, Head of Retailer and Business Insight at NIQ, provided further insight: “This Christmas, shoppers remained cautious, prioritising affordability. Retailers worked hard to encourage spending by keeping supply chain price increases to a minimum, and many food retailers reduced prices in December to support demand.”
Watkins also gave a forecast for the year ahead, saying: “Looking ahead to 2026, although inflation has peaked, weak shopper sentiment is likely to persist, so shoppers will continue to seek out lower prices and promotional offers.”
