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Inflation falls to 2.0% in December 2013

Released: 14 January 2014 Download PDF

CPI Percentage change over 10 years

United Kingdom

CPI Percentage change over 10 years
Source: Office for National Statistics

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The rate of inflation faced by households fell slightly in the year to December 2013. The Consumer Prices Index (CPI) – the headline measure of inflation – grew by 2.0% in the year to December, down from 2.1% in November. This means that a basket of shopping that cost £100.00 in December 2012 would have cost £102.00 in December 2013.

CPIH, the measure which includes the costs owner occupiers’ face in owning, maintaining and living in their own homes, grew by 1.9% - unchanged from November.

The small drop in the growth of inflation came primarily from prices for food & non-alcoholic beverages (notably fruit and meat), and for recreation & culture (most notably computer games). Food prices have been rising, but at a slower rate than a year ago. Looking over the longer term, inflation for food & non-alcoholic beverages has outstripped overall inflation in each of the last eight years.

The drop in the level of growth of inflation was partially offset by price movements in a number of sectors, most notably the transport sector. Petrol and diesel prices rose between November and December 2013 compared with a drop between the same two months a year ago. A smaller than usual rise in air fares partially offset this upward contribution. The first of the expected gas and electricity bill price increases also resulted in a small upward contribution to the CPI.

Source: Office for National Statistics

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