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flag UK retail sales rose 0.4% in Dec 2025, boosted by online jewelry demand, despite overall spending challenges.

flag UK retail sales increased 0.4% by volume in December 2025, defying expectations of flat growth, owing to strong online demand for gold and silver jewelry, while non-food retailers saw a 0.9% decrease. flag The annual sales increase was 1.3%, the highest since 2021, but the fourth quarter fell 0.3% due to earlier declines. flag Supermarkets saw a 0.2% increase, while clothing and footwear sales fell 0.7%. flag Analysts identified delayed holiday shopping, budget uncertainty, and grocery inflation as key factors limiting spending. flag Despite a weak end to the year, consumer confidence improved slightly, and economists predict a recovery in 2026 as inflation and interest rates fall.

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