UK inflation dips for second consecutive month

UK inflation fell barely for the second consecutive month from 10.7% to 10.5% in December as easing gas prices had been offset by the rising worth of meals which meant the determine remained near its earlier 40-year excessive.

The most recent figures, from The Workplace For Nationwide Statistics (ONS), present that on a month-to-month foundation, CPI rose by 0.4% in December 2022, in contrast with an increase of 0.5% in December 2021.

The most important downward contribution to the change within the CPI annual inflation fee between November and December 2022 got here from transport (notably motor fuels), clothes and footwear.

General, gas costs rose by 11.5% within the yr to December 2022, down from 17.2% within the yr to November. Common petrol costs had been unchanged between November and December final yr, however fell by 8.3 pence per litre between the identical two months of 2022.

In the meantime, the costs of clothes and footwear elevated by 6.4% within the yr to December 2022, down from 7.5% in November. On a month-to-month foundation, costs fell by 0.3% between November and December 2022.

Partially offsetting among the easing inflation charges, the annual fee for eating places and accommodations was 11.4% in December 2022, up from 10.2% in November. The ONS revealed that the December annual fee was the very best because the constructed historic estimate of 11.4% in September 1991, and was final larger in August 1991, when it was 11.8%.

Meals and non-alcoholic beverage costs rose by 16.9% within the 12 months to December 2022, up from 16.5% in November. The annual fee of inflation for this class has risen for 17 consecutive months, from minus 0.6% in July 2021.

ONS chief economist Grant Fitzner mentioned: “Inflation eased barely in December, though nonetheless at a really excessive degree with total costs rising strongly over the last yr as a complete. Costs on the pump fell notably in December, with the price of clothes additionally dropping again barely.

“Nevertheless, this was offset by will increase for coach and air fares in addition to in a single day lodge lodging. Meals prices proceed to spike with costs additionally rising in outlets, cafés and eating places.”