{"id":2493,"date":"2025-01-15T09:21:41","date_gmt":"2025-01-15T09:21:41","guid":{"rendered":"https:\/\/otetmarkets.com\/blog\/?p=2493"},"modified":"2025-01-15T09:21:41","modified_gmt":"2025-01-15T09:21:41","slug":"uk-inflation-update","status":"publish","type":"post","link":"https:\/\/otetmarkets.com\/blog\/news\/uk-inflation-update\/","title":{"rendered":"UK Annual Inflation Rate Drops to 2.5% in December 2024"},"content":{"rendered":"\n

UK Annual Inflation Rate unexpectedly dropped to 2.5% in December 2024, down from 2.6% in November. This figure came in lower than the forecasted 2.6% and closely aligned with the Bank of England’s (BoE) forecast made in early November. Despite the slight decline, inflation still reflects a more stable economic environment than in previous months, signaling that price pressures are starting to ease.<\/p>\n\n\n\n

\"UK<\/figure>\n\n\n\n

Slowdown in Key Sectors<\/strong><\/h2>\n\n\n\n

Several key sectors saw a slowdown in inflation during December. The prices for restaurants and hotels, for example, dropped to 3.4%, the lowest level since July 2021, compared to 4% in November. This reduction was primarily driven by a 1.9% fall in hotel prices. Similarly, inflation for recreation and communication slowed to 3.4% from 3.6%, while services inflation eased to 4.4%, the lowest since March 2022, down from 5%. Food and non-alcoholic beverages saw steady inflation at 2%, indicating stable pricing for essential goods.<\/p>\n\n\n\n

Transport and Housing Costs See Mixed Trends<\/strong><\/h3>\n\n\n\n

Transport costs experienced a more muted decrease, with inflation at -0.6%, compared to -0.9% in November. This was partly due to upward pressures from motor fuels and second-hand cars, which rose by 1%, partially offsetting a significant drop in airfares (-26%). Meanwhile, housing and utility prices rose slightly more in December, with inflation increasing to 3.1% from 3% in November, reflecting a slight uptick in housing-related costs.<\/p>\n\n\n\n

\n

Read More: UK Consumer Confidence Index Drops<\/a><\/strong><\/p>\n<\/blockquote>\n\n\n\n

Core Inflation Continues to Decline<\/strong><\/h3>\n\n\n\n

The core inflation rate, which excludes volatile items such as food and energy, also saw a decline. It dropped to 3.2% in December, down from 3.5% in November. The monthly rate of core inflation increased by 0.3%, which was below the expected 0.5%. These figures suggest that underlying inflationary pressures are continuing to ease, supporting the view that inflation is gradually returning to more manageable levels in the UK.<\/p>\n\n\n\n

Source<\/a><\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

UK Annual Inflation Rate unexpectedly dropped to 2.5% in December 2024, down from 2.6% in November. This figure came in lower than the forecasted 2.6% and closely aligned with the Bank of England’s (BoE) forecast made in early November. Despite the slight decline, inflation still reflects a more stable economic environment than in previous months, […]<\/p>\n","protected":false},"author":2,"featured_media":2495,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,2],"tags":[37],"class_list":["post-2493","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-global-economy-news","category-news","tag-financialnews"],"_links":{"self":[{"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/posts\/2493","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/comments?post=2493"}],"version-history":[{"count":1,"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/posts\/2493\/revisions"}],"predecessor-version":[{"id":2497,"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/posts\/2493\/revisions\/2497"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/media\/2495"}],"wp:attachment":[{"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/media?parent=2493"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/categories?post=2493"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/tags?post=2493"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}