London,(Samajweekly) The UK’s consumer price index (CPI) rose by 4 per cent in the 12 months to December 2023, up from 3.9 per cent in November, according to official data.
This was the first inflation increase since February 2023, said the Office for National Statistics (ONS).
It said that CPI rose by 0.4 per cent monthly in December, reports Xinhua news agency.
“The rate of inflation ticked up a little in December, with rises in tobacco prices due to recently introduced duty increases,” said Grant Fitzner, chief economist of the ONS.
Prices in the alcohol and tobacco division rose by 12.8 pe cent in the year to December.
As announced in Autumn Statement 2023 in November, duty rates on tobacco products increased by retail price index (RPI) inflation plus 2 per cent, with duties on hand-rolling tobacco products increasing by RPI inflation plus 12 per cent.
The tobacco price rises “were offset partially by falling food inflation, where prices still rose but at a much lower rate than this time last year”,said Fitzner.
“Meanwhile, the prices of goods leaving factories are little changed over the last few months, while the costs of raw materials remain lower than a year ago,” he added.
According to the ONS, food and non-alcoholic beverage prices rose by 8 per cent in December year-on-year, the lowest growth rate since April 2022.
The latest data, significantly down from a peak of 11.1 per cent in October 2022, is still double the central bank’s 2 per cent target.
Economists are expecting the Bank of England to cut interest rate, which currently stands at a 15-year high of 5.25 per cent, at around the middle of this year.
