Inflation unexpectedly fell to 2.5% in December, following two consecutive months of increases.

Today’s inflation rate is above the Bank of England’s 2% target but lower than the forecast of 2.6% by economists.

This means that prices are still rising but at a slower pace than before.

Read more:
Inflation falls slightly after two months of rises

But how does all of this affect the cost of groceries, clothing and leisure activities? Use our calculator to find out.

Which prices are increasing fastest?

Hair gel was the item with the largest price increase, with prices for 150-200ml rising by more than a third from £3.04 to £4.08.

The cost of olive oil also continues to rise. Prices for 500ml to one litre have risen from £7.40 to £9.11, an increase of 23%.

Olive oil has consistently had high price increases and experts have put that price rise down primarily to poor olive yields due to last year’s heatwaves in southern Europe.

However, they expect a significantly better harvest in the 2024-25 season, thanks to significant rainfall in Spain. The harvest could be double the size of last year’s, which may lead to lower prices in the coming months.

Food and drink products are responsible for seven of the 10 biggest increases since last year.

Top five price rises:

• Hair gel (150-200ml): up 34%, £3.04 to £4.08
• Olive oil (500ml-1litre): up 23%, £7.40 to £9.11
• Large chocolate bar: up 23%, £1.73 to £2.12
• White potatoes (per kg): up 20%, 74p to 89p
• Iceberg lettuce (each): up 20%, 82p to 98p

Overall, 45 of the 156 types of food and drink tracked by the ONS have actually become cheaper since last year.

Crumpet lovers have reason to celebrate. Prices for a pack of 6-9 crumpets have dropped by 9%, while another breakfast favourite, peanut butter, has seen an 8% drop.

Overall, 139 out of the 444 products in our database are cheaper than they were 12 months ago.

Top food price decreases:

• Pulses (390-420g): down 12%, 76p to 67p
• Crumpets (pack of 6-9): down 9%, £1.01 to 92p
• Peanut butter (225-350g): down 8%, £2.18 to £2.00
• Mayonnaise (390-500g / 420-540ml): down 7%, £2.20 to £2.04
• Canned tomatoes (390-400g): down 7%, 70p to 65p

Among non-supermarket items, kerosene has seen the largest price drop, falling by 17%.

What is the effect of long-term inflation?

The price changes described above compare the cost of items to where they were a year ago.

However, inflation has now been at high levels for an extended period of time.

The war in Ukraine, COVID, Brexit, and other supply chain pressures have all contributed to spiralling costs in recent years.

Inflation reached a 40-year high of 11.1% in October 2022.

Follow Sky News on WhatsApp

Keep up with all the latest news from the UK and around the world by following Sky News

Tap here

While the headline inflation figure has come down markedly, any amount of inflation means that prices are still rising, and building on already inflated costs.

We’ve compared the costs of shopping items with what they were three years ago to see what the cumulative impact of inflation has been.

The biggest price rise for groceries over that time has been for olive oil (500ml to one litre), which has increased nearly two-and-a-half times (150%), from £3.64 to £9.11 in the past three years.

Iceberg lettuce is up by four-fifths, with one costing 98p now compared with 54p in December 2021.

Use our calculator to see how much prices in your shopping basket have risen in total since three years ago.

Who is worst affected?

Richard Lim, chief executive of Retail Economics, says: “It’s the least affluent households that are going to see much higher rates of inflation as they spend more of their income on food and energy.”

We’ll continue to update our spending calculator over the coming months so you can see how you’ll be affected.

Follow the Daily podcast on Apple Podcasts,  Google Podcasts,  Spotify, Speaker

Methodology

The ONS collects these prices by visiting thousands of shops across the country and noting down the prices of specific items. There are upwards of 100,000 prices published every month, from more than 600 products.

The items that form the “official shopping basket” change each year to reflect how the purchasing habits of the population have changed. For example in March 2021, after a year of the pandemic, hand gel, loungewear bottoms and dumbbells were added, while canteen-bought sandwiches were among the items removed.

Where there aren’t the exact equivalent items available at a survey shop, ONS officials pick the best alternative and note that they’ve done this so it’s weighted correctly when the averages are worked out.

Shops are weighted as well, so the price in a major chain supermarket will have a greater impact on the average than an independent corner shop.

We will be updating these figures each month while the cost of living crisis continues.

During the pandemic, more of the survey was carried out over the phone and work is ongoing to digitise the system to be able to take in more price points by getting data from supermarket receipts, rather than making personal visits.

Data journalists: Daniel Dunford, Amy Borrett, Ben van der Merwe, Joely Santa Cruz and Saywah Mahmood
Interactive: Ganesh Rao
Design: Phoebe Rowe, Brian Gillingham

The Data and Forensics team is a multi-skilled unit dedicated to providing transparent journalism from Sky News. We gather, analyse and visualise data to tell data-driven stories. We combine traditional reporting skills with advanced analysis of satellite images, social media and other open-source information. Through multimedia storytelling, we aim to better explain the world while also showing how our journalism is done.

Earth has experienced its hottest year on record in 2024, with temperatures significantly exceeding previous highs. This marked a temporary breach of the critical global warming limit of 1.5 degrees Celsius above pre-industrial levels, a target outlined in international agreements. Scientists have warned that surpassing this limit over the long term could lead to severe environmental consequences, including increased sea levels, extreme weather events, and widespread ecological damage. Concerns have been raised about the implications for human lives, infrastructure, and ecosystems.

Record Temperatures and Their Impact

As reported by phys.org, according to reports from global weather monitoring agencies, the year 2024 witnessed temperatures exceeding the 1.5 degrees Celsius threshold, with some agencies reporting figures as high as 1.6 degrees Celsius. The accumulation of greenhouse gases, primarily due to the burning of fossil fuels, has been identified as the primary driver of this warming. Experts, including Samantha Burgess of the Copernicus Climate Service, have linked rising temperatures to phenomena such as melting glaciers, rising sea levels, and intensified weather patterns.

Global Climate Disasters in Focus

The United States alone recorded 27 weather-related disasters, each causing damages exceeding $1 billion, according to the National Oceanic and Atmospheric Administration (NOAA). Hurricane Helene, which caused over $79 billion in damage and claimed 219 lives, was the most devastating event of the year. Scientists, such as Katharine Hayhoe from Texas Tech University, have highlighted the increasing frequency of such disasters, with billion-dollar events now occurring every three weeks on average.

Future Outlook on Global Warming

Although some experts suggest a slight decrease in temperatures for 2025 due to natural climatic patterns, concerns persist about the broader trend of warming. The breach of the 1.5 degrees Celsius limit has been described as a dire warning of the accelerating impacts of climate change.