UK inflation lowers to 2.5% in December

Down from 2.6% in November

The UK Consumer Prices Index (CPI) dropped to 2.5% in December, below FactSet’s consensus of 2.8% for the month.

According to data from the Office for National Statistics today (15 January), the downward trend was driven by restaurants and hotels, with the latter recording a 1.9% decline in prices over the month, as opposed to a rise of 3.1% in December 2023.  The CPI index was down from 2.6% in the 12 months to November, however it rose by 0.3% on a monthly basis. Rise in UK inflation 'unwelcome' ahead of BoE interest rate meeting Core CPI – excluding energy, food, alcohol, and tobacco – was up 3.2% in the 12 months to December 2024, 0.3 percentage points lower than in November (3.5%). ...