The UK Office for National Statistics (ONS) revealed on Wednesday that the annualized Consumer Prices Index (CPI) came in at 10.5% in December compared to the 10.7% recorded in November while missing predictions of a 10.6% print.
Since December 1981, the index has been declining since it peaked. The core inflation rate, which excludes volatile food and energy prices, increased by 6.3% YoY last month compared to 6.3% in November, falling short of expectations of 6.6%.
Consumer prices in the UK increased by 0.4% in December, above both predictions of 0.4% and the preceding 0.4%, according to the monthly data.
The UK Retail Price Index for December came in at 0.6% MoM and 13.4% YoY, below forecasts over the long term.
“The highest increases in the yearly CPIH inflation rate are projected for December 2022. Mostly from electricity, gas, and other fuels), as well as from food and non-alcoholic drinks, housing, and home services.
“Transport (especially motor fuels), apparel and footwear, and recreation and culture had the biggest mostly offsetting downward contributions to the shift in the CPIH and CPI annual inflation rates between November and December 2022.”
