Overall shop price inflation increased to 0.7% year-over-year in December, compared to a growth of 0.6% in November.

According to the latest figures from the British Retail Consortium (BRC) taken between 1 and 7 December, food inflation went up by 3.3% year-over-year, higher than the 3% growth in November and in line with the 3-month average of 3.3%.

Fresh food inflation grew by 3.8% year-over-year in December, picking up from a 3.6% increase in the month prior.

Meanwhile, ambient food inflation went up to 3.8% year-over-year in December, compared to a 2.4% growth in November.

Subscribe to Grocery Gazette for free

Sign up here to get the latest grocery and food news each morning

Helen Dickinson, chief executive of the BRC, said: “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. This year, retailers will continue to do all they can to keep prices down.”

According to the BRC, decreasing energy prices and improved crop supply will help ease the cost pressure, however, public policy costs and regulation will likely “keep inflation sticky”.

Mike Watkins, head of retailer and business insight, NIQ, said: “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.”