UK inflation retreats further, remains above 10%

LONDON: British annual inflation dropped further last month on easing transport costs, official data showed Wednesday, but remains above a historically-high 10 percent.

The Consumer Prices Index fell to 10.1 percent in January compared with a rate of 10.5 percent in December, the Office for National Statistics said in a statement.

“Although still at a high level, inflation eased again in January,” noted ONS chief economist Grant Fitzner.

“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.

Finance minister Jeremy Hunt welcomed the reduction but cautioned that “the fight is far from over”.

He added in a statement: “High inflation strangles growth and causes pain for families and businesses — that’s why we must stick to the plan (to) halve inflation this year, reduce debt and grow the economy.”

The data comes after figures last week showed Britain narrowly avoided recession in 2022.

Global inflation soared last year, with the rate of UK price increases peaking above 11 percent in October, as the invasion of Ukraine by Russia fuelled energy and food prices.

That has triggered a cost-of-living crisis, with Britain facing its biggest strikes by workers in more than a decade as high inflation erodes the value of wages.