Wall Street Ends Mixed as Tech and Financial Stocks Weigh on Markets Amid Thin Holiday Trading 
South Korea Factory Output Misses Forecasts in November Amid Ongoing Economic Uncertainty 
U.S. Dollar Steadies Ahead of Fed Minutes as Markets Eye Policy Divisions 
South Korea Factory Activity Returns to Growth in December on Export Rebound 
Oil Prices Slide in 2025 as Oversupply and Geopolitical Risks Shape Market Outlook 
USDA $12 Billion Farm Aid Program Draws Mixed Reactions from Row Crop Farmers 
Oil Prices Slip Slightly as Markets Weigh Geopolitical Risks and Supply Glut Concerns 
U.S. Dollar Starts 2026 Weak as Yen, Euro and Sterling Hold Firm Amid Rate Cut Expectations 
Asian Stock Markets Start New Year Higher as Tech and AI Shares Drive Gains 
China Imposes 55% Tariff on Beef Imports Above Quota to Protect Domestic Industry 
South Korea Inflation Rises to 2.3% in December, Matching Market Expectations 
China Manufacturing PMI Rebounds in December, Offering Boost to Economic Growth Outlook 
Federal Reserve Begins Treasury Bill Purchases to Stabilize Reserves and Money Markets 
Japanese Business Leaders Urge Government Action as Weak Yen Strains Economy 
U.S. Dollar Slides Toward Biggest Annual Loss Since 2017 as 2026 Risks Loom 
Gold Prices Rebound in Europe as Geopolitical Tensions and Fed Outlook Support Bullion 
Asia Manufacturing PMI Rebounds as Exports and Tech Demand Drive Growth into 2026 
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.
