Consumer Price Inflation (CPI) rate update

15 February 2023

The UK inflation rate has dropped to 10.1%, according to the Office for National Statistics (ONS). The rate at which prices are rising has dropped slightly, but inflation remains close to an all-time high.  

CPI is the rate at which the prices of goods and services bought by households rise or fall. It is estimated by using price indices. The ONS keeps track of prices, in a ‘’shopping basket’’ of around 700 popular goods and services bought by households. This is reviewed every year, so that the index is representative and to up to date.

The CPI rose by 10.1% in the 12 months to January 2023, down from 10.5% in December 2022. On a monthly basis, CPI fell by 0.6% in January 2023, compared with a fall of 0.1% in January 2022. According to data released by the ONS today, the largest downward impact to the change in CPI annual inflation rates between December 2022 and January 2023 came from transport, restaurants and hotels. However, food, alcoholic beverages and tobacco prices continue to rise.  

How will interest rates change in the future? Keep an eye out for our update on the upcoming Bank of England bank rates, set to be released on 23 March.

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