Inflation drops slightly for third month in a row but remains in the double digits

15 February 2023, 07:44 | Updated: 15 February 2023, 07:47

Inflation dropped slightly in January to 10.1% from 10.5% in December, the latest official figures show.

The drop in the rate of Consumer Prices Index inflation, reported by the Office for National Statistics, is the latest sign that the inflation crisis may be easing in the UK after hitting a near 40-year high.

The high point in the recent spike was 11.1%, recorded in October. The latest drop - the third month in a row - was in line with a Bank of England prediction.

Inflation - the rate at which prices increase - started to go up sharply at the end of 2021, and has been linked to Covid-related supply chain difficulties, and later the war in Ukraine and associated energy price rises.

Responding to the latest figures, Chancellor Jeremy Hunt said: “While any fall in inflation is welcome, 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."

Labour's shadow chancellor Rachel Reeves said: "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.

Tom Swarbrick: 'When inflation goes up it's not the government's responsibility'

"Despite Britain's enormous potential, in April households will be hit by another economic blow when energy prices go up."

Read more: What is the UK inflation rate and when could it start to come down?

Read more: UK inflation falls for second month in a row but food prices are still on the rise

She added: "Labour would be bringing in a proper windfall tax on oil and gas giants now to stop energy bills going up in April. Our long-term plan to sprint to clean power and insulate 19 million homes will keep bills low for the future too, and get our economy growing."