Shop price deflation hits 0.7% in January as prices are expected to rise

Major discounts for non-food products

Shop price deflation stood at 0.7% in January, higher than the 1% deflation reported in December and slightly above the average rate of -0.8% in the last three months, according to data from the British Retail Consortium (BRC).

Non-food products reported significant discounts, with deflation within the sector hitting -1.8% in January, up from -2.4% in December and higher than the three-month average rate of -2%. UK inflation lowers to 2.5% in December Meanwhile, food inflation slid to 1.6% in January, down from 1.8% in December 2024. Similarly, fresh food inflation fell from 1.2% in December to 0.9% this month, while ambient food inflation also edged down from 2.8% to 2.5% in the same period. Helen Dickinson, chief executive of the BRC, said the widespread January sales were "good news bargain hun...