The Consumer Prices Index including owner occupiers’ housing costs (CPIH) 12-month inflation rate was 2.7% in December 2017, down from 2.8% in November 2017. Following a steady increase from late 2015, since April 2017 the CPIH rate has levelled off, ranging between 2.6% and 2.8%. The downward effect came mainly from air fares, along with a fall in the prices of a range of recreational goods, particularly games and toys. The downward contributions were partially offset by an increase in tobacco prices, reflecting duty increases that came into effect following the Autumn Budget, along with an increase in petrol and ... (full story)

British inflation eased off its post-Brexit vote high in December, official data showed on Tuesday, suggesting the financial squeeze on many households could be about to get a little bit easier. Consumer price inflation slipped to an annual rate of 3.0 percent in December, below November’s nearly six-year high of 3.1 percent and the first fall since June. The figure was in line with the median forecast of economists in a Reuters poll. Inflation jumped in Britain after the decision by voters in June 2016 to leave the European Union which hammered the value of the pound and pushed up the cost of imports. (full story)