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Inflation rises unexpectedly in December in first jump in 10 months

2024-01-17 00:00:00.0 独立报-英国政治原网页

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Inflation rose unexpectedly in December in a blow to Rishi Sunak after the prime minister suggested the economy had “turned a corner”.

Consumer Prices Index inflation rose to 4 per cent in December from 3.9 per cent in November, the Office for National Statistics (ONS) said.

Labour said the rise in inflation was “bad news for families who are worse off after fourteen years of economic failure”.

Shadow chancellor Rachel Reeves said: “Prices are still rising in the shops, with the average weekly shop ￡110 more than it was before the last general election, and the average family set to be ￡1,200 worse off under Rishi Sunak’s tax plan.”

And the Liberal Democrats said the increase would worry people across the country “seeing their pay stretched as the cost of living crisis continues to rage on”.

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Treasury spokesman Sarah Olney said: “Let’s be clear, after years of mismanagement and mayhem, this Conservative Government must do far more to get our economy back on track.”

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But the chancellor insisted “the plan is working and we should stick to it”.

Jeremy Hunt insisted the ‘plan is working’ despite the increase in inflation

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Jeremy Hunt insisted the ‘plan is working’ despite the increase in inflation

(PA)

Jermy Hunt added: “As we have seen in the US, France and Germany, inflation does not fall in a straight line.

“We took difficult decisions to control borrowing and are now turning a corner, so we need to stay the course we have set out, including boosting growth with more competitive tax levels.”

ONS chief economist Grant Fitzner said: “The rate of inflation ticked up a little in December, with rises in tobacco prices due to recently introduced duty increases.

“These were partially offset by falling food inflation, where prices still rose but at a much lower rate than this time last year.

“Meanwhile, the prices of goods leaving factories are little changed over the last few months while the costs of raw materials remain lower than a year ago.”

He added that the inflation figure would have stayed flat at 3.9 per cent without the rises in tobacco prices.

The rate at which prices are rising was expected to fall to 3.8 per cent in December, and the shock increase dampens the prospect of the Bank of England cutting interest rates.

The central bank hiked interest rates from 0.25 per cent at the beginning of 2022 to 5.25 per cent in August in a bid to bring spiralling inflation under control.

And positive economic data at the end of last year led to expectations interest rates could fall back to 4.25 per cent by the end of 2024.

A dip in interest rates would be a boost to homeowners, who have been hit with huge increases in mortgage payments as a result of the Bank of England’s hikes.

More about Prime Minister Office for National Statistics Rishi Sunak

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1/ 2Inflation rises unexpectedly in December in first jump in 10 months

Inflation rises unexpectedly in December in first jump in 10 months

Jeremy Hunt insisted the ‘plan is working’ despite the increase in inflation

Inflation rises unexpectedly in December in first jump in 10 months

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