THE UK’s rate of inflation fell to 10.5% in December, as petrol prices dropped easing some of the pressure on people’s finances.
Data from the Office for National Statistics (ONS) reveals the annual rate has fallen from 10.7% in November.
Inflation is a measure of how the price of goods and services have changed over the past year.
It has eased since the eye-watering 41-year high of 11.1% seen in October, when soaring energy bills pushed up the cost of living.
Prices are still rising, but at a slower rate than last month.
The slowdown is good news for stretched households, and some experts believe inflation has now peaked.
The ONS said that a drop in the price of fuel was part of the reason for the fall, as well as the costs of clothes also dropping back slightly.
But, this was off-set by increases for coach and air fares, as well as overnight hotel accommodation.
Food costs continue to spike with prices also rising in shops, cafes and restaurants, the ONS said.
Grant Fitzner, chief economist at the ONS said: “Inflation eased slightly in December, although still at a very high level, with overall prices rising strongly during the last year as a whole.
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“Prices at the pump fell notably in December, with the cost of clothing also dropping back slightly.
“However, this was offset by increases for coach and air fares as well as overnight hotel accommodation.
“Food costs continue to spike, with prices also rising in shops, cafes and restaurants.”
On a monthly basis, inflation rose by 0.4% in December 2022, compared with a rise of 0.5% in December 2021.
Petrol prices hit a record high over the summer but have since fallen, easing pressure on motorists.
Overall, the ONS said fuel prices rose by 11.5% in the year to December 2022, down from 17.2% in the year to November.
The latest figures follow the news yesterday that regular pay in real terms fell by 2.6% in September to November.
Meanwhile, official data last week revealed the economy unexpectedly grew by 0.1% in the month of November.
However, the ONS said that in the three months up to November, gross domestic product (GDP) fell by 0.3%.
