LONDON: Britain’s annual inflation rate unexpectedly fell to 2.5 percent last month, official data on Wednesday showed, easing some pressure on the Labour government faced with economic unrest.
Analysts had forecast no change in the Consumer Prices Index (CPI) from the 2.6 percent figure in November.
The latest reading from the Office for National Statistics (ONS) comes one day after finance minister Rachel Reeves was forced to defend the government’s handling of the economy following a recent spike in state borrowing costs and a hefty drop in the pound.
Reacting to the data, Reeves said “there is still work to be done to help families across the country with the cost of living”.
“I will fight every day to deliver that growth and improve living standards in every part of the UK,” she added.
Britons remain hampered by high interest rates and elevated energy bills despite the annual inflation rate retreating from a four-decade peak of above 11 percent in October 2022.
Last month, “inflation eased very slightly as hotel prices dipped” after rising in December 2023, noted chief ONS economist Grant Fitzner.
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