// Inflation in UK eases in December but cost pressures continue to be at forefront of shoppers’ minds
// The ONS revealed that the rate of Consumer Prices Index (CPI) inflation fell to 10.5% in December from 10.7%
New research has shown UK inflation ease back further last month but the cost-of-living crisis continues to dominate concerns.
The ONS revealed that the rate of Consumer Prices Index (CPI) inflation fell to 10.5% in December from 10.7%, which could indicate that it has reached its peak.
Falling fuel costs were largely behind the slowdown in the pace of price rises, with the average petrol price down by 8.3 pence per litre month-on-month in December.
Subscribe to Retail Gazette for free
Sign up here to get the latest retail news straight into your inbox each morning
Clothing and footwear helped ease inflation in December, with prices rising by 6.5%, down from 7.5% in November.
ONS chief economist, Grant Fitzner said: “Inflation eased slightly in December, although still at a very high level, with overall prices rising strongly during the last year as a whole.
“Prices at the pump fell notably in December, with the cost of clothing also dropping back slightly. Food costs continue to spike, with prices also rising in shops, cafes and restaurants.”
The latest figures also showed declines in the rates of the other measures of inflation recorded by the ONS, with the Retail Price Index (RPI) falling to 13.4% from 14% in November, while CPI including housing costs (CPIH) dropped to 9.2% from 9.3% in November.
