UK Inflation Eases To 10.1%

The UK’s consumer price inflation rate fell to 10.1% in the year to January 2023, according to figures from the Office of National Statistics (ONS). This is the third consecutive month of decline, and brings the UK’s inflation rate down from 10.5% in December 2022.

The ONS attributed the fall to lower transport costs, including airfares, petrol prices and motor vehicle insurance. Prices for clothing and footwear also fell, while there was a slight increase in the cost of food and non-alcoholic beverages.

The news of a fall in consumer price inflation will boost hopes that the UK has finally reached a turning point following a period of rising prices. However, the inflation rate remains stubbornly in double digits, and is still well above the Bank of England’s target of 2%.

Related Facts

• Inflation in the Eurozone fell to 8.6% in the year to January 2023, slightly above expectations.
• The European Central Bank (ECB) raised its main borrowing costs by 0.5 percentage points across the single currency bloc from 8 February.
• The United States Federal Reserve raised its target benchmark interest rate by 0.25 percentage points in February.

Key Takeaway

The fall in UK inflation to 10.1% in January 2023 is a welcome sign that the UK may finally be reaching a turning point after a period of rising prices. However, the inflation rate remains stubbornly in double digits, and is still well above the Bank of England’s target of 2%.

Conclusion

The fall in UK inflation to 10.1% in January 2023 is a welcome sign that the UK may finally be reaching a turning point after a period of rising prices. It is also in line with the trend of lower inflation rates across Europe. However, the inflation rate remains stubbornly in double digits, and is still well above the Bank of England’s target of 2%.