UK inflation dipped in December but remains at one of the highest levels since records began as the cost-of-living crisis continues.

The overall inflation index fell from 10.7% in November to 10.5% in December 2022, according to the latest consumer price index (CPI) figures.

It comes after the CPI hit a 41-year peak of 11.1% in October 2022.

The Office for National Statistics (ONS) said the annual inflation rate dipped as a result of reduced motor fuel prices alongside cheaper clothing, footwear and recreation and culture prices. 

Despite the dip, inflation remains at one of the highest levels the country has seen.

Food and non-alcoholic beverages inflation accelerated to 16.8% in December, up from 16.4% in November, whereas alcoholic beverages and tobacco inflation fell to 3.7% in December from 4.1% in November.

Earlier this month, figures from the BRC-NeilsenIQ Shop Price Index showed food inflation had risen to its highest rate on record at 13.3% in December 2022.


Food inflation is likely to remain high as people feel the pinch in early 2023 with the government scaling back support for household energy bills and tax and mortgage rates soaring.

Sainsbury’s chief executive Simon Roberts warned earlier this month that food inflation would not peak until the summer.

Responding to the CPI inflation figures, BRC chief executive Helen Dickinson said: “With food price inflation rising and the December cold snap forcing people to spend more on their energy bills, the festive season was a challenging time for families across the UK. As the war in Ukraine continues, so does the pressure on energy and food prices, particularly for animal feed and fertiliser, which drove up the price of many household staples. However, discounting ahead of Christmas helped to ease inflation in areas such as clothing and footwear, furniture and alcoholic beverages.

“While there is some indication that inflation may have reached its peak, prices will remain high in the coming months. Retailers are determined to support their customers throughout this cost-of-living crisis. They are keeping the price of many essentials affordable, expanding their value ranges, raising pay for their own staff and offering discounts for vulnerable groups.”