The UK's inflation rate experienced a significant uptick last month, according to fresh data from the Office for National Statistics (ONS). This increase was primarily fuelled by sharp price rises in air travel, tobacco products, and live entertainment, painting a mixed picture for consumers across the nation.
Key Drivers of Inflation Acceleration
Several categories saw a notable acceleration in price growth during December. Passenger air travel emerged as a major contributor, with average air fares skyrocketing by 11.0 per cent year-on-year. This marked a dramatic surge from the modest 0.3 per cent increase recorded in November, largely attributed to heightened demand over the festive Christmas period and school holidays.
Tobacco products also exerted upward pressure, following a duty hike introduced at the end of November. The average price of cigarettes climbed 6.9 per cent year-on-year, up from 4.2 per cent the previous month, while cigars rose 4.2 per cent compared to 1.7 per cent.
Cultural outings became more expensive, with tickets for cinemas, theatres, and concerts increasing 3.7 per cent year-on-year, a significant acceleration from November's 1.3 per cent jump. Other items experiencing faster inflation included women's clothing, refrigerators and freezers, mineral water, and various food items such as pizza, quiche, breakfast cereal, crisps, and cheese.
Notable Swings in Specific Categories
Some products witnessed particularly dramatic shifts. The cost of pasta and couscous swung from an annual price fall of 4.2 per cent in November to a positive inflation rate of 0.2 per cent in December. An even larger reversal was recorded for irons, which went from an annual price drop of 7.7 per cent in November to an increase of 3.5 per cent in December.
Areas of Inflation Deceleration
Despite these increases, the inflation rate was tempered by a welcome slowdown in price rises for several everyday items. The largest downward pressure came from specific foodstuffs:
- Margarine and other vegetable fats saw annual inflation ease sharply from 7.6 per cent to 0.8 per cent.
- Butter experienced a deceleration, with the rate easing from 12.1 per cent to 8.9 per cent.
- Cocoa and powdered chocolate inflation slowed from 6.2 per cent to 2.1 per cent.
Prices also fell faster in December than in November for heaters and air conditioners, coffee machines and tea makers, washing machines, and children's footwear. Additionally, there was a slowing in price rises for chocolate, tea, and soft drinks.
Comparative Inflation Rates: November vs December
Below are examples illustrating how the Consumer Prices Index (CPI) inflation rate has accelerated or eased, with figures showing the average price rise in the 12 months to November followed by the 12 months to December.
Examples where annual inflation has accelerated:
- Irons: November down 7.7%, December up 3.5%
- Passenger air travel: November up 0.3%, December up 11.0%
- Pizza & quiche: November up 0.3%, December up 5.1%
- Breakfast cereals: November up 1.6%, December up 5.3%
- Mineral or spring waters: November up 3.1%, December up 6.2%
Examples where annual inflation has eased:
- Margarine/other vegetable fats: November up 7.6%, December up 0.8%
- Heaters, air conditioners: November down 0.4%, December down 5.7%
- Butter: November up 12.1%, December up 8.9%
- Chocolate: November up 17.3%, December up 15.5%
- Tea: November up 5.3%, December up 3.5%
The data underscores the complex and varied nature of inflationary pressures within the UK economy, highlighting how seasonal factors and policy changes can significantly impact consumer costs across different sectors.
