6 min read
Inflation slowed in January, according to official figures, but remains near record-highs with rates still higher than ten per cent.
Inflation was recorded as 10.1 per cent in the year to January, down from 10.5 per cent in the year to December, the Office for National Statistics (ONS) said.
Food prices and energy bills are among the main drivers for overall inflation, the ONS said, but petrol prices and the cost of restaurants and hotels are among the price rises that have started to slow.
Chancellor Jeremy Hunt welcomed the falling figures, but said the “fight is far from over”.
“High inflation strangles growth and causes pain for families and businesses – that’s why we must stick to the plan, halve inflation this year, reduce debt and grow the economy,” he said.
Consumer Prices Index including owner occupiers’ housing costs (CPIH) rose by 8.8% in the 12 months to Jan 2023, down from 9.2% in Dec 2022.
CPI rose by 10.1%, down from 10.5%.
— Office for National Statistics (ONS) (@ONS) February 15, 2023
Labour’s shadow chancellor Rachel Reeves warned that households will be hit by “a further economic blow” in the coming months.
“With inflation still close to a 40 year high, people will be asking if 13 years of Tory government has left them and their family feeling better off? The answer will be no,” she said.
“Despite Britain’s enormous potential, in April households will be hit by another economic blow when energy prices go up.
“Labour would be bringing in a proper windfall tax on oil and gas giants now to stop energy bills going up in April.
Halving inflation is one of