6:23 am, January 6, 2026
Shop price inflation driven up by rising food costs
Shop price inflation edged up in December as food price rises continued to add pressure to household budgets, figures indicate.
Food inflation increased to 3.3%, up from November’s 3% and far outstripping wider shop price inflation of 0.7%, according to the British Retail Consortium (BRC) and NIQ data.
Fresh food inflation increased higher still to 3.8%, but deflation on products other than food remained steady at 0.6% amid widespread promotions across popular gifting categories, including toys, books, and home entertainment.
Claire’s and The Original Factory Shop collapse into administration
High street chains Claire’s and The Original Factory Shop (TOFS) are being put into administration, after their owner said ‘last-ditch’ measures had fallen through, putting about 2,500 UK staff at risk of redundancy.
The two retailers had already undergone restructuring and were bought by investment firm Modella Capital last year.
Modella said it had made the ‘tough decision’ to kickstart insolvency proceedings for the businesses. It will mean 1,355 employees in the UK and Ireland at 154 Claire’s shops will be put at risk, and 1,220 staff across 140 TOFS’ stores.
Upcoming Volkswagen ID. Polo to gain more physical buttons as interior revealed
The new Volkswagen ID. Polo will feature a more button-heavy design when it launches later this year.
While many of the German brand’s recent models – including the ID.3 and ID.7 – have utilised a more screen-focused design with fewer physical buttons, the new ID. Polo appears to employ a greater number of physical controls instead.
Volkswagen says that the new ID. Polo has a ‘new, holistic design approach, shaped especially by customer feedback’ and, as a result, gets ‘new clarity and quality, and intuitive controls with familiar VW operating patterns’.
The markets
The FTSE 100 closed above 10,000 for the first time on Monday as defence stocks and miners climbed amid US-Venezuela uncertainty.
The FTSE 100 index closed up 53.43 points, 0.5%, at 10,004.57, a record closing peak. The FTSE 250 index ended up 184.72 points, 0.8%, at 22,593.93, and the AIM All-Share index closed up 6.02 points, 0.8%, at 774.85.
The pound was quoted at 1.3516 dollars at the time of the London equities close on Monday, up from 1.3491 dollars at Friday’s close. The euro was lower at 1.1713 dollars from 1.1745 dollars. Against the yen, the dollar was trading at 156.41 yen, down from 156.64 yen.
Spring statement to take place on March 3, Rachel Reeves tells MPs
A spring statement will be delivered in Parliament on Tuesday March 3, Rachel Reeves has told MPs.
The statement will follow an economic and fiscal forecast by the Office for Budget Responsibility (OBR), due to be prepared for that date, the chancellor said in a written statement to the Commons.
Reeves insisted the government only plans to ‘deliver one major fiscal event a year at the budget’ each autumn. It ‘will provide an interim update on the economy and public finances’, following the budget at the end of November.
US congressional leaders briefed on Venezuela as questions mount over next steps
US secretary of state Marco Rubio and other top officials briefed political leaders in Congress late on Monday on the striking military operation in Venezuela.
It comes amid mounting concerns that president Donald Trump is embarking on a new era of US expansionism without consultation of politicians or a clear vision for running the South American country.
‘We don’t expect troops on the ground,’ said House of Representative speaker Mike Johnson. ‘This is not a regime change. This is a demand for a change in behaviour.’
Monday on Car Dealer
FCA investigates claims management firm over motor finance sales tactics
A claims management firm which once said it was ‘fighting for the people’ is being investigated by the Financial Conduct Authority (FCA) over concerns about its sales practices in relation to the £11bn motor finance scandal.
Wessex Garages confirms 2025 losses as headwinds continue to impact car dealers
Car dealer Wessex Garages has reported another year of losses for 2024/25 as the industry continues to battle difficult trading conditions.
Tesla loses crown of world’s best-selling EV carmaker to BYD as sales slide again
Tesla lost its crown as the world’s bestselling EV carmaker to Chinese rival BYD, as the American firm saw sales slide for a second year in a row.
Vicky Hart added to Waylands board as car dealer looks to ‘build on momentum’ in 2026
Waylands’ marketing chief Vicky Hart has been promoted to the dealer group’s board of directors as the retailer looks to continue growing in 2026.
Weather
Bright conditions affect Wales and southern England, while cloud dominates elsewhere with patchy snow in central and northern England, reports BBC Weather. Scotland and Northern Ireland see rain and snow spreading from the west.
Tonight brings lingering heavy snow in northern Scotland, rain and hill snow across England and Wales, then showers overnight.
