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UK inflation falls to 2.5% in December | |
(32 minutes later) | |
UK inflation fell slightly last month as hotel prices dipped and tobacco costs eased. | |
Prices rose 2.5% in the year to December, down from 2.6% the month before, the Office for National Statistics (ONS) said. | Prices rose 2.5% in the year to December, down from 2.6% the month before, the Office for National Statistics (ONS) said. |
Despite the drop, the rate of price rises remains above the Bank of England's target. | |
The latest figures come after pressure has increased on public finances in recent days due to government borrowing costs hitting their highest level for several years. | |
The value of the pound has also slumped against the US dollar, prompting criticism of the chancellor, Rachel Reeves, over her handling of the economy and Budget tax rises. | |
Grant Fitzner, chief economist of the ONS, said while hotel prices had fallen last month, the price decreases were offset by the cost of fuel and second-hand cars rising. | |
Tobacco prices also increased by less than in December 2023, he added, which was a factor in the overall rate of inflation coming down. |