Inflation remains close to 40-year high

    Simpson Wood
    9th March 2023
    Home » Blog Posts » Inflation remains close to 40-year high

    Inflation remains close to a 40-year high despite falling in January, according to the latest data from the Office for National Statistics (ONS).

    The ONS found that inflation fell to 10.1% in the year to January 2023 from 10.5% in December 2022. The Bank of England has also reported that inflation ‘might now have turned a corner’ . The drop has been linked to the costs of fuel, restaurant and hotel prices slowing. The data also revealed that, on a monthly basis, the Consumer Prices Index (CPI) fell by 0.6% in January 2023, compared to a fall of 0.1% in January 2022.

    However, the ONS found that food inflation remains high with the 12 month rate to January 2023 at 16.7%. The largest upward contributions to the annual Consumer Prices Index including owner occupiers’ housing costs (CPIH) inflation rate in January came from housing and household services, food and non-alcoholic beverages.

    Alpesh Paleja, Lead Economist at the Confederation of British Industry (CBI), said:

    ‘Another fall in inflation over January suggests that the tide is turning on price pressures. But with inflation and pipeline cost pressures set to remain high this year, households and businesses are likely to feel the pain for a while yet. In particular, the continued strength in more domestic measures of inflation will keep alarm bells ringing at the Bank of England.

    ‘Given the central role played by energy prices in driving inflation up over the past year, the government must use the upcoming Budget to deliver a home-grown, secure, low-cost and low-carbon energy system. Measures that boost green investment will not only help reduce exposure to volatility in global energy prices, but also deliver a sustainable path to reaching net zero.’

    Internet link: ONS website CBI website

    Need Some Advice?

    Looking for some help or a little advice?

    Call today on 01484 534431 or fill in our enquiry form below, and we’ll call you back.

    Budget 2024 Guide

    The Spring Budget was delivered by the Chancellor Jeremy Hunt on Wednesday 6 March. In what was widely expected to be Mr Hunt’s final Budget ahead of an election, speculation…

    Budget 2024 Key measures at a glance

    Following Jeremy Hunt’s budget earlier today we have summarised below the key tax changes and announcements he has made: Our full detailed guide on the Budget and our Tax Tables…

    Clarity on new border checks is vital, says BCC

    The government must clarify plans around new customs processes as firms remain in the dark about crucial aspects of their operation, says the British Chambers of Commerce (BCC). The first…
    From below of delighted aged male entrepreneur in classy outfit standing on street and speaking on cellphone while laughing and looking away

    Over 50s bucking decline in freelance numbers

    Tens of thousands more over 50s are now running their own businesses despite an overall decline in self-employment since 2020, according to the Association of Independent Professionals and the Self-Employed…