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UK’s inflation drops to 10.1% in Jan 2023 – Report  

Oluwanifemi Ojo
Oluwanifemi Ojo
United Kingdom

The UK recorded a fall in Consumer Price Inflation rate dropped beyond expectations from 10.5 in December to 10.1% in January.

The closely watched measures of price growth also dropped according to official data.

A prediction by the economists polled by Reuters stated that the CPI would drop in January by 10.3% from the 11.1% it was in October.

The Office for National Statistics stated on Wednesday that the core CPI which does not include energy, food, alcohol and tobacco also dropped from 6.3% in December to 5.8% in January.

After the data, the value of the pound decreased against the dollar and the euro.

The Bank of England said earlier in February about the price decline which may result in a lower interest rate.

The BoE is also keeping a close eye on service prices, which increased 6.0% annually in January compared to 6.8% in December.

The finance minister said, “While any fall in inflation is welcome, the fight is far from over.”

According to the Office for National Statistics, the drop in inflation in January is because of transport and hospitality prices.

The chief economist at accountancy firm Mazars, George Lagarias, said, “The January inflation number is consistent with the weakness we have seen in retail in the past six months.”

“It means that companies don’t have much more room to pass cost increases to consumers. All other things being equal, slowing inflation suggests further economic weakness ahead and, possibly, an uptick in unemployment.”


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