Annual U.K. shop prices declined again in December, driven by heavy discounts as retailers seek to make up for the lower sales earlier in the year, but cost pressures are expected to drive prices higher in 2025, a report said.

Prices at U.K. stores decreased 1% on year in December compared with a 0.6% decline recorded in the previous month, the report by NielsenIQ and the British Retail Consortium showed Thursday. This is the lowest rate since August 2021.