Consumer Inflation falls slightly to 10.1 per cent driven by a fall in fuel prices but decline is…
Consumer inflation falls slightly to 10.1 per cent driven by a fall in fuel prices but decline is limited by an increase in the cost of booze
The rate of Consumer Prices Index inflation fell to 10.1 per cent in January from 10.5 per cent in December, the Office for National Statistics said.
Falling petrol and diesel prices contributed to the slight decline, the ONS said. But the cut in fuel costs was offset by a surge in the price of alcoholic drinks and cigarettes’.
The small decline – the third month in a row it has fallen – comes as Chancellor Jeremy Hunt prepares his Budget next month, with cutting inflation the key driver of planned changes.
Mr Hunt said: ‘While any fall in inflation is welcome, the fight is far from over.
‘High inflation strangles growth and causes pain for families and businesses – that’s why we must stick to the plan halve inflation this year, reduce debt and grow the economy.’
The rate of Consumer Prices Index inflation fell to 10.1 per cent in January from 10.5 per cent in December, the Office for National Statistics said.
Falling petrol and diesel prices contributed to the slight decline, the ONS said. But the cut in fuel costs was offset by a surge in the price of alcoholic drinks and cigarettes’.
His Labour shadow, Rachel Reeves, said: ‘With inflation still close to a 40 year high, people will be asking if 13 years of Tory government has left them and their family feeling better off? The answer will be no.
‘Despite Britain’s enormous potential, in April households will be hit by another economic blow when energy prices go up.’
Most economists had been expecting a drop to 10.3 per cent last month.
Grant Fitzner, chief economist for the ONS, said: ‘Although still at a high level, inflation eased again in January.
‘This was driven by the price of air and coach travel dropping back after last month’s steep rise.
‘Petrol prices continue to fall and there was a dip in restaurant, cafe and takeaway prices.’
He added: ‘The cost of furniture decreased by more than this time last year, in line with traditional New Year discounting. These were offset by rising prices for alcohol and tobacco, following on from seasonal price cuts in December and a more subdued rise at the same time last year.’