UK inflation unexpectedly falls to 2.5% in December
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UK inflation unexpectedly fell last month as a dip in hotel prices helped offset a jump in the cost of fuel, new official figures show. The rate of Consumer Prices Index inflation fell to 2.5% in December from 2.6% in November, the Office for National Statistics said.
Most analysts had been expecting the inflation rate to remain unchanged at 2.6% last month. December’s headline figure nevertheless remains above the Bank of England’s 2% target level which has raised concern for economists and policymakers amid stagnant economic growth.
Grant Fitzner, the ONS’s chief economist, said: “Inflation eased very slightly as hotel prices dipped this month, but rose a year ago. “The cost of tobacco was another downward driver, as prices increased by less than this time last year. “This was partly offset by the cost of fuel and also second-hand cars, which saw their first annual growth since July 2023.”.
