A woman walks past a sale sign displayed in a store in London, Britain, Jan. 17, 2024. The United Kingdom's (UK) consumer price index (CPI) rose by 4 percent in the 12 months to December 2023, up from 3.9 percent in November, according to data released on Wednesday. (Xinhua)
LONDON, Jan. 17 (Xinhua) -- The United Kingdom's (UK) consumer price index (CPI) rose by 4 percent in the 12 months to December 2023, up from 3.9 percent in November, according to data released on Wednesday.
This was the first inflation increase since February 2023, said the Office for National Statistics (ONS). It said that CPI rose by 0.4 percent monthly in December.
"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 percent 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 percent, with duties on hand-rolling tobacco products increasing by RPI inflation plus 12 percent.
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 percent in December year-on-year, the lowest growth rate since April 2022.
"Today's inflation figures show it isn't 'job done,' despite coming after last month's sharper-than-expected fall. Indeed, risks to the inflation outlook remain very much to the upside," said Alpesh Paleja, lead economist of the Confederation of British Industry (CBI).
In the near term, the lifting of the energy price cap in January will likely lead to a small bump in the CPI rate, and there are now renewed risks from tensions in the Middle East, through their potential impact on supply chains and commodity prices, said Paleja.
Wednesday's data, significantly down from a peak of 11.1 percent in October 2022, is still double the central bank's 2 percent target.
Economists are expecting the Bank of England to cut interest rate, which currently stands at a 15-year high of 5.25 percent, at around the middle of this year. ■
A man sits in a store of Three UK promoting winter sale in London, Britain, Jan. 17, 2024. The United Kingdom's (UK) consumer price index (CPI) rose by 4 percent in the 12 months to December 2023, up from 3.9 percent in November, according to data released on Wednesday. (Xinhua)
People purchase fruit in a shop in London, Britain, Jan. 17, 2024. The United Kingdom's (UK) consumer price index (CPI) rose by 4 percent in the 12 months to December 2023, up from 3.9 percent in November, according to data released on Wednesday. (Xinhua)
People purchase fruit in a shop in London, Britain, Jan. 17, 2024. The United Kingdom's (UK) consumer price index (CPI) rose by 4 percent in the 12 months to December 2023, up from 3.9 percent in November, according to data released on Wednesday. (Xinhua)
