Inflation in the UK has falling slightly in a win for consumers, according to the latest figures from the Office for National Statistics (ONS). The consumer price index (CPI) rate for the 12 months to December 2024 dropped to 2.5 per cent, up from 2.6 per cent the month before.
Britons have been saddled with inflation-hiked prices amid the ongoing cost of living crisis with today’s figures likely to ease financial concern for millions of households across the country.
The news places is good news for Chancellor Rachel Reeves, who is under scrutiny over the Autumn Budget decisions which many have blamed for gilt yields rising over the past week.
Businesses have reacted negatively to Labour’s decision to raise the rate paid on National Insurance contributions for employers with many claiming it will raise prices and cost jobs.
However, the latest ONS figures suggest prices will not be rising as much as expected in the near future, despite ongoing concerns over the Bank of England interest rate.
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The Chancellor has been handed a reprieve following the latest inflation figures
GETTY / PA
According to the ONS, the largest downward contribution to the monthly change in the CPI annual rates came from restaurants and hotels, while the largest upward contribution to both came from transport.
Over the period, core CPI increased by 3.2 per cent, which is down from 3.5 per cent. in November. Furthermore, the CPI goods annual rate rose from 0.4 per cent to 0.7 per cent, while the CPI services annual rate fell from five per cent to 4.4 per cent.
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Inflation has pushed the price of goods and services up GETTY 
Banks and building societies have been responding to changes in the base rate from the Bank of England GETTY 
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