U.S. Imposes 25% Tariff on Select Brazilian Imports After Section 301 Trade Investigation 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
Japanese Yen Holds Steady as Intervention Hopes Grow Ahead of U.S. CPI Data 
Oil Prices Rise as U.S. Strikes on Iran Raise Strait of Hormuz Supply Fears 
Asian Stocks Slide as Oil Surge, U.S.-Iran Tensions and Fed Rate Bets Weigh on Markets 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
Australia Consumer Sentiment Rises in July as Fuel Price Relief Lifts Confidence 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
Asian Stocks Slide as Chip Selloff Deepens Ahead of TSMC Earnings 
UBS Boosts China Tech Bets, Adds Kuaishou and Meituan to Focus List 
Oil Prices Surge as U.S.-Iran Conflict Escalates and Strait of Hormuz Risks Grow 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
Asian Currencies Hold Steady as Middle East Tensions Offset Weaker US Dollar 
British retail prices rose at a faster pace last month, and retailers may find it difficult to prevent further price increases in 2026 as cost pressures continue to build, according to the British Retail Consortium (BRC). The latest data highlights ongoing challenges for the UK retail sector as inflation remains persistent despite some easing factors.
Annual shop price inflation increased to 0.7% in December, up slightly from 0.6% in November and broadly in line with the three-month average, the BRC reported. This modest rise suggests that while inflation is not accelerating sharply, downward pressure on prices remains limited. Food prices were a key driver, with annual food inflation climbing to 3.3% in December from 3.0% the previous month. In contrast, non-food prices continued to fall, declining by 0.6% year-on-year, matching November’s pace of decrease.
Helen Dickinson, Chief Executive of the British Retail Consortium, said retailers will continue to do everything possible to keep prices low for consumers. However, she warned that while falling energy costs and improved crop supplies may help ease some pressures, rising public policy costs and increased regulation are likely to keep inflation “sticky” in the months ahead. These structural cost increases are making it harder for retailers to absorb expenses without passing them on to shoppers.
One major factor adding to retailer costs is the planned rise in Britain’s minimum wage. From April, the minimum wage will increase by 4.1% to £12.71 per hour, significantly raising staff expenses for businesses across the retail sector. Employers are also still adjusting to higher costs introduced in Finance Minister Rachel Reeves’ first budget in October 2024, which added further financial strain.
The Bank of England is closely monitoring food price inflation, as it believes food costs play an important role in shaping consumer inflation expectations. Although the UK’s overall consumer price inflation eased to 3.2% in November, persistent food inflation could slow progress toward price stability.
Looking ahead, the combination of rising wages, regulatory costs, and cautious consumer demand suggests UK retailers may face continued pricing challenges well into 2026, keeping shop price inflation firmly in focus for policymakers and households alike.
