British inflation decreases to 10.5% in December while food costs rise

Although British inflation decreased last month after reaching a 41-year high in October, the pressure on households remained high as food and drink prices increased at the fastest rate since 1977.

 

The Office for National Statistics reported on Wednesday that annual consumer price inflation decreased to 10.5% in December from 10.7% in November, which was in line with economists’ expectations in a Reuters poll.

 

The cost of food and non-alcoholic beverages, led by eggs, milk, and cheese, was 16.8% higher than a year earlier, the sharpest increase since September 1977, while lower prices for gasoline and clothing helped to lower the headline rate.

 

In November, the Bank of England predicted that as energy prices stabilise, the headline CPI would decline from a peak of 11.1% in October of last year to about 5% by the end of 2023.