According to official figures, the inflation rate in the UK remained constant last month, despite the rise in the energy price cap. Inflation measures how prices increase over time and reached 4% in the year up until January. The new energy price cap raised the typical annual household bill to £1,928, which is a £94 increase. However, the rise in energy prices was offset by other falling prices like food and furniture.
The latest figures from the Office for National Statistics (ONS) found that the price of second-hand cars rose by 1.5% between December 2023 and January, marking the first increase since May of last year. Food prices, on the other hand, fell on a monthly basis, which is the first time since September 2021. The largest push downwards on inflation came from household goods and furniture.
Grant Fitzner, who is the chief economist at the ONS, declared that the new statistics are a collection of mixed results. The end result of these different factors was no adjustment to the headline rate of inflation. Meanwhile, Chancellor Jeremy Hunt stated that the plan is working because inflation never declines in a flawless straight line. He claimed that the government had made substantial progress bringing inflation down from its peak of 11%.
Nevertheless, inflation is still sitting well above the central bank’s 2% target
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