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UK inflation edged down to 10.1% in January, the UK government statistics agency announced on Wednesday. Hugo Philpott/UPI file photo
Britain’s inflation rate held in January at its highest level since 1981, as industry and consumers grapple with soaring prices for almost all goods and services. File photo of Jeff Kowalsky/UPI
UK inflation edged down to 10.1% in January, the UK government statistics agency announced on Wednesday. Andrew Bailey, governor of the Bank of England, has the daunting task of bringing inflation down to the bank’s 2% target without triggering a recession. Photo by Bonnie Cash/UPI
February 15 (United Press International) — Britain’s annual inflation rate continued to slide last month, the third month in a row that the pace of price increases slowed, but remained at a near 40-year high, according to government data released on Wednesday.
Consumer price inflation fell more than expected by nearly half a percentage point to 10.1% from 10.5% in December, marking the third straight month that consumer price inflation fell from a peak of 11.1% in October. Office for National Statistics January report.
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But food price inflation remained high, falling just 0.1% to 16.7%, the highest level in 45 years, while headline CPI put the country close to the top of the developed-economy inflation league table.
Inflation in the European Union is 9.2%, compared with 6.4% in the United States.
The 0.4% drop in the UK was driven by a slower pace of price increases in transport, energy, restaurants and hotels, with air and public transport and petrol and diesel contributing the most.
However, this was partially offset by higher alcohol and tobacco prices.
Grant Fitzner, chief economist at the ONS, said: Despite high inflation There were further signs that companies were facing slower cost increases, driven by lower prices for crude oil, electricity and gasoline.
“However, business prices in general remain high, especially for steel and food,” Fitzner said.
chancellor of the exchequer jeremy hunt While any fall in inflation is welcome, the struggle far from over.
“High inflation is killing growth and causing pain to households and businesses — that’s why we must stick to our plan to halve inflation this year and grow the economy, reduce debt and grow the economy,” Hunt said, referring to the Economic blueprint. Share in January.
But Labour’s shadow chancellor, Rachel Reeves, said Britons would take little comfort from the latest figures.
“Inflation figures this morning are still close to their highest level in 40 years and households across the UK are feeling worse,” Reeves said. “Labour’s plans for a proper windfall tax on oil and gas majors will stop energy bills from rising in April. Our long-term plan will also keep future bills low.”
A six-month government subsidy to cap gas and electricity unit prices for household and business bill payers is set to end in April.
Inflation report comes a day after data showed average Wages rise for British workers Growth was 6.7 percent in the fourth quarter, driven by a tight labor market and workers’ demands for higher wages to keep up with rising prices.
However, wage growth has failed to keep pace with inflation of more than 10%, meaning workers are paid about 2.5% less in real terms, leaving them worse off than they were a year ago.
Double-digit inflation and soaring wages make it harder for the Bank of England to hit that target when its Monetary Policy Committee meets next month to decide whether to keep rates on hold or cut them from the current 4% level – risk triggering otherwise Decay by hiking.
The main task of the central bank is to maintain the inflation rate at the target level of 2%.
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