There has been a slight rise in U.K. Inflation up 0.1 per cent to 4 per cent in December after a sharp fall in the previous month
Figures out this morning from the Office of National Statistics pointed at rises in the cost of from alcohol and tobacco while the largest downward contribution came from food and non-alcoholic beverages.
Economists had been forecasting a fall from 3.9% to 3.7%, after the bigger-than-expected dip last month.
The figures will be seen as a blow to those wanting an early fall in interest rates
Joseph Rowntree Foundation senior economist Rachelle Earwaker said:
“As winter sets in, now is a bad time for progress on inflation to stall. Inflation remains at double the Bank of England’s target, and the price of essentials like fuel and food are much higher than they were, with food inflation falling but still running high at 8%.
“Anyone who needs to use their heating to stave off freezing temperatures this week can expect to pay over 80% more than what they did three years ago.
“Price rises have outstripped increases in benefits which won’t increase again until April, and, even then, won’t make up the difference. Around 6.6 million low income households (56%) reported not having enough money for either food or heating their home between May and October 2023. Around 2.4 million households (20%) didn’t have enough money for
both food and heating. “It’s not right that our social security system, which is meant to protect all of us when we fall on hard times, doesn’t give families enough to afford the essentials. All political parties must commit to introducing an ‘Essentials Guarantee’ to Universal Credit to ensure everyone has a protected minimum amount of support to afford the essentials.
