UK shop prices fell in January, not as fast as they fell in December

UK British Retail Consortium (BRC) Shop Price Index -0.7% y/y in January

• expected -0.7%, prior -1.0%

Shop prices declined at a slower rate in January compared to December

• food prices saw their biggest monthly increase since April 2024, +0.5% m/m (December was +0.1%)
• BRC warned that inflationary pressures could grow due to rising costs, including tax increases introduced by finance minister Rachel Reeves in October

Earlier on the UK:

• ICYMI - Morgan Stanley slashes UK 2025 GDP growth forecast to 0.9% (from 1.3% previously)