British inflation falls in December as food costs soar
The cost of eggs, milk, and cheese rose to unprecedented levels at the end of 2022
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Inflation in the United Kingdom fell in December after hitting a four-decade high, however, food and drink prices rose at the fastest rate in the country since the 1970s.
The Office for National Statistics on Wednesday said annual consumer price inflation slowed in December to 10.5% compared to 10.7% the prior month.
Petrol and clothing prices were the two main factors that led to the inflation drop, but the cost of food and beverages continued to rise at an unprecedented level. Prices for foods and drinks such as eggs, milk and cheese rose 16.8% compared to the previous year, according to Reuters.
Moreover, when compared to other countries, Britain's inflation was much higher as the United States had a 6.5% annual rate in December while Germany recorded a 9.6% annual rate.
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Inflation in the United Kingdom fell in the month of December to 10.5% down from 10.7% in November 2022. (Reuters/Dado Ruvic / Reuters Photos)
Some experts believe the lingering inflation and energy prices will lead the Bank of England to raise interest rates around February from 3.5% to 4%. The pound sterling also strengthened against the dollar, according to the new data.
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Although energy prices did fall in the final month of 2022, the February invasion of Ukraine caused European countries to implement economic sanctions against Russia that have led to the current energy crisis and the lingering high cost of petrol.
According to Reuters, Britain's core CPI was unchanged for December at a rate of 6.3%.