UK inflation drops to three-month low of 10.5pc in December

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UK inflation drops to three-month low of 10.5pc in December
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LONDON, Jan 18 ― British consumer price inflation fell to a three-month low of 10.5 per cent in December, offering some comfort to the Bank of England and households, but food...

LONDON, Jan 18 ― British consumer price inflation fell to a three-month low of 10.5 per cent in December, offering some comfort to the Bank of England and households, but food and drink prices continued to accelerate, rising at the fastest pace since 1977.

However, while lower prices for petrol and clothing bore down on the headline rate, the cost of food and non-alcoholic beverages was 16.8 per cent higher than a year earlier, the biggest increase since September 1977. Core CPI ― which excludes energy, food, alcohol and tobacco, and which some economists view as a better guide to underlying inflation trends ― was unchanged at 6.3 per cent in December.

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