UK inflation dips, easing some pressure on government

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UK inflation dips, easing some pressure on government

Britain’s annual inflation rate fell unexpectedly to 2.5 percent in December, down from 2.6 percent the previous month, according to official data released Wednesday by the Office for National Statistics (ONS). This slight dip offers some relief to the Labour government amid growing economic concerns.

 

Analysts had predicted the Consumer Prices Index (CPI) would remain unchanged from November’s figure. The ONS attributed the drop to lower hotel prices and a slower rise in tobacco costs compared to the previous year. “Inflation eased very slightly as hotel prices dipped after rising in December 2023,” said Grant Fitzner, chief ONS economist. “The cost of tobacco was another downward driver, as prices increased less than a year earlier,” he added. However, Fitzner noted that rising fuel prices and a rebound in the cost of second-hand cars, marking their first annual increase since…



Source: Linda Ikeji