Consumer Price Inflation (CPI) rate update

18 January 2023

The UK inflation rate has dropped to 10.5%, this has partially been due to the fall of fuel prices, as well as the costs of clothes.

Consumer price inflation 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 Office for National Statistics (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 Consumer Prices Index (CPI) rose by 10.5% in the 12 months to December 2022, down from 10.7% in November and 11.1% in October, according to data released by the ONS today. However, the rate for December 2022 is still close to a 40-year high, where prices such as food, continue to rise.  

So the question is, will the modest ease in the rate of inflation stop hiking interest rates? Keep an eye out for our update on the upcoming Bank of England bank rates, set to be released on 2 February 2023.

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