FX.co ★ UK Retail Sales Growth Hits 7-Month Low

Retail sales in the UK experienced a modest increase of 1% year-on-year on a like-for-like basis in December 2025. This marked the slowest growth in seven months, as households curtailed holiday expenditures in response to ongoing cost pressures. This figure significantly lags behind the 3.1% rise noted in December 2024 but surpasses market forecasts, which anticipated a 0.6% rise. Non-food sales saw a decline of 0.3% over the month, falling well short of the 12-month average growth rate of 1.1%. In contrast, food sales rose by 3.1%, a result of both higher prices and a figure that still trails the 12-month average of 3.7%. Helen Dickinson, Chief Executive of the BRC, commented, “It was a subdued Christmas for retailers, with sales growth decelerating for the fourth consecutive month.” She further noted, “Many consumers were evidently holding out for sales, leading to a significant uptick in activity during the final week, driven by Boxing Day and the onset of the January sales.”