PRICES held steady last month as shoppers enjoyed one of the busiest Christmas trading seasons for years.

The British Retail Consortium's (BRC) shop price index showed the high street spending boom had not given rise to inflationary pressures.

Prices on a range of commonly-bought goods were 0.11 per cent higher than a year earlier and unchanged on November, the BRC said.

Director general Bill Moyes said: "This confirms that the high sales growth of 2001 has not generated inflation. Shoppers are spending, but not recklessly."

He said the figures allayed fears the spending boom would overheat the economy and gave no reason for an interest rate rise.

The BRC said there was a fall in the price of spirits during December, but that was offset by price rises for magazines, and for bread, following a poor wheat harvest.

BRC figures issued this week showed that high street retailers had enjoyed their best Christmas for at least five years.