15 Feb 2023
Data published recently by the Office for National Statistics (ONS) has revealed that the rate of inflation remains close to a 40-year high.
The ONS found that inflation fell to 10.1% in the year to January 2023 from 10.5% in December 2022. The new figure indicates that inflation slowed in line with the Bank of England's predictions.
The drop has been linked to the costs of fuel and restaurant and hotel prices slowing. The data also revealed that, on a monthly basis, the Consumer Prices Index (CPI) fell by 0.6% in January 2023, compared to a fall of 0.1% in January 2022.
However, the ONS found that food inflation remains high at 16.7%. The largest upward contributions to the annual Consumer Prices Index including owner occupiers' housing costs (CPIH) inflation rate in January came from housing and household services and food and non-alcoholic beverages.
Commenting on the data, David Bharier, Head of Research at the British Chambers of Commerce (BCC), said: 'A further easing in the rate of inflation to 10.1% continues a very slow move out of the peak.
'Household electricity and gas costs remain by far the biggest drivers, while transport costs saw a further easing. Producer price inflation, however, remains much higher at 14.1%.
'The stubbornly high rate means that we are now seeing a compounding effect on what was already a spiking inflation rate this time last year.'