UK inflation falls as millions set to be hit with hefty bill hikes
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THE UK's rate of inflation has slowed - but millions will still be hit with hefty bill price hikes later this year. The Office for National Statistics (ONS) said the Consumer Price Index (CPI) measured 2.5% in the 12 months to December. This was down from 2.6% in November, which was the highest since March.
![[British pound coins and banknotes.]](https://www.thesun.co.uk/wp-content/uploads/2025/01/pound-coins-bank-notes-922695031.jpg?strip=all&w=960)
Despite the fall, it means millions of broadband and mobile phone customers will still be hit with mid-contract price rises from around April. This is because many mobile and broadband firms link price rises to December's CPI measure of inflation. Grant Fitzner, ONS' 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 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.". The ONS' latest data also reveals core CPI inflation, which strips out energy, food, alcohol and tobacco, slowed in the 12 months to December to 3.2%, down from 3.5% in November.
