Inflation eases slightly to 10.5% from 10.7% the previous month due to cheaper fuel and clothes, official figures show

Published

2 years ago

January 18, 2023

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The rate of inflation eased to 10.5%, according to official figures – down from 10.7% in November.

The Office for National Statistics (ONS) said the reduced cost of motor fuels led to the decline in the core consumer prices index (CPI) measure of inflation along with cheaper clothing and footwear, and recreation and culture.

Pushing inflation up, the ONS added, were higher prices in restaurants and hotels, food and non-alcoholic beverages.

Today’s announcement is the latest signal that the UK might have seen the worst of inflation. The number is down from a 41-year high of 11.1% recorded in October.

Economists polled by Reuters had expected a rate of 10.5% for the year up to December 2022.

Prices had been rising steadily since late 2021, when supply chain problems linked to COVID lockdowns and worker shortages meant demand for goods could not be met.

The problem was exacerbated by Russia’s invasion of Ukraine, when countries scrambled to find other energy sources and reduce their use of Russian gas, pushing up the cost of energy and all other goods that require energy input, as a result.

The slow decrease in inflation is not good news for borrowers, as the Bank of England will likely continue its programme of interest rate increases to bring inflation to its 2% target.

The Bank’s chief economist this month warned that inflation may prove to be more persistent in the UK than other countries.

While it is expected by financial markets that rates will peak at 4.25% in May, Mr Pill’s comments may signal willingness at the Bank to raise rates higher or for longer if inflation does not come down.

Responding to today’s announcement, Chancellor of the Exchequer Jeremy Hunt, said:

“High inflation is a nightmare for family budgets, destroys business investment and leads to strike action, so however tough, we need to stick to our plan to bring it down.

“While any fall in inflation is welcome, we have a plan to go further and halve inflation this year, reduce debt, and grow the economy – but it is vital that we take the difficult decisions needed and see the plan through.

“To help families in the meantime, we are providing an average of £3,500 of support for every household over this year and next.”

If the government’s inflation reduction targets are reached, it will not be because of state policy, the Institute of Chartered Accountants in England and Wales (ICAEW) said.

“The Prime Minister should achieve his pledge to halve inflation this year, but this will owe more to the downward pressure on prices from a flatlining economy and falling energy costs, than from any government action,” the ICAEW economics director said.

While inflation is easing the pressures on households are sizeable and will remain that way, the Confederation of British Industry (CBI) noted.

“Despite this, the cost-of-living crisis will continue to be a very real problem for both households and businesses, as price pressures remain high in the short-term,” the CBI’s lead economist, Alpesh Paleja, said. “Against the backdrop of a recession firms will continue to face higher costs and weak demand conditions.”

UK

Kemi Badenoch calls on Sir Keir Starmer to sack Tulip Siddiq over property allegations

Published

1 hour ago

January 12, 2025

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Kemi Badenoch calls on Sir Keir Starmer to sack Tulip Siddiq over property allegations

Conservative Party leader Kemi Badenoch has called on Sir Keir Starmer to sack Treasury minister Tulip Siddiq over allegations she lived in properties linked to allies of her aunt, Sheikh Hasina, the deposed prime minister of Bangladesh.

It comes after the current Bangladeshi leader, Muhammad Yunus, said London properties used by Ms Siddiq should be investigated.

He told the Sunday Times the properties should be handed back to his government if they were acquired through “plain robbery”.

Tory leader Ms Badenoch said: “It’s time for Keir Starmer to sack Tulip Siddiq.

“He appointed his personal friend as anti-corruption minister and she is accused herself of corruption.

“Now the government of Bangladesh is raising serious concerns about her links to the regime of Sheikh Hasina.”

Ms Siddiq insists she has “done nothing wrong”.

Her aunt was ousted from office in August following an uprising against her 20-year leadership and fled to India.

Ms Siddiq is also named with her aunt in Bangladesh court documents about meetings with the Russian government.

As economic secretary to the Treasury, Ms Siddiq is responsible for policy on both the City and tackling corruption.

She referred herself to the prime minister’s ethics watchdog on Monday following the reports about the properties.

On the same day, the prime minister said: “Tulip Siddiq has acted entirely properly by referring herself to the independent adviser, as she’s now done, and that’s why we brought into being the new code.

“It’s to allow ministers to ask the adviser to establish the facts, and yes, I’ve got confidence in her, and that’s the process that will now be happening.”

UK

Search area widened for missing sisters in Aberdeen

Published

1 hour ago

January 12, 2025

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Search area widened for missing sisters in Aberdeen

Police in Aberdeen have widened the search area for two sisters who disappeared four days ago in the city.

Eliza and Henrietta Huszti, both 32, were last seen on CCTV on Market Street after leaving their home on Tuesday at around 2.12am.

The sisters – who are part of a set of triplets and originally from Hungary – crossed the Victoria Bridge to the Torry area and turned right on to a footpath next to the River Dee.

They headed in the direction of Aberdeen Boat Club but officers said there is no evidence to suggest the missing women left the immediate area.

Specialist search teams, police dogs and a marine unit have been trying to trace the pair.

Further searches are being carried out towards the Port of Aberdeen’s South Harbour and Duthie Park.

Police Scotland said it is liaising with authorities in Hungary to support the relatives of the two sisters.

Chief Inspector Darren Bruce said: “Eliza and Henrietta’s family are understandably extremely worried about them and we are working tirelessly to find them.

“We are seriously concerned about them and have significant resources dedicated to the inquiry.”

The sisters, from Aberdeen city centre, are described as slim with long brown hair.

Officers have requested businesses in and around the South Esplanade and Menzies Road area to review their CCTV footage for the early morning of Tuesday 7 January.

Police added they are keen to hear from anyone with dashcam footage from that time.

UK

Katie Piper reveals artificial eye decision – 16 years after acid attack

Published

1 hour ago

January 12, 2025

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Katie Piper reveals artificial eye decision - 16 years after acid attack

TV presenter Katie Piper has revealed her decision to get an artificial eye, 16 years after an acid attack that left her with life-changing injuries and partial blindness.

The Loose Women panellist, 41, is an advocate for those with burns and disfigurement injuries.

She shared a video of her being fitted with the prosthetic on Instagram.

Piper said: “After many years battling with my eye health, I’ve reached the end of the road somewhat, and the decision has been made to try a prosthetic eye shell.

“This marks the start of a journey to have an artificial eye, with an incredible medical team behind me.

“As always I’m incredibly grateful to all those in the NHS and private health care system for their talent and kindness.

“I will share my journey, I’m hopeful and nervous about being able to tolerate it and would love to hear from any of you in the comments if you’ve been on this journey or have any advice.”

Commenting on the post, presenter Lisa Snowdon said Piper was a “warrior” and a “true inspiration”.

Piper has undergone hundreds of operations after suffering an acid attack arranged by her ex-boyfriend in March 2008.

She gave up her right to anonymity and made a documentary in 2009 called Katie: My Beautiful Face.

Piper also founded the Katie Piper Foundation which supports survivors of life-changing burns and scars, and has received an honorary doctorate from the Royal College of Surgeons to mark her ground-breaking work.

She was made an OBE in 2021 for her services to charity and burn victims.