UK inflation soars to 10-year high

UK inflation (CPI) hit 5.4% in December - the highest since 1992. The latest figures from the Office for National Statistics also put the inflation measure including owner occupiers’ housing costs (CPIH) at a similarly high level 4.8%. This all marks an increase of 4.8 and 4.0 percentage points since December 2020 for CPI and CPIH, respectively.

After the October figures marked a ten year high, the ONS explained the sharp upturn: “Housing and household services made the largest upward contribution to the change between September and October, with further large upward contributions to change from several divisions including transport, restaurants and hotels, education, furniture and household goods, and food and non-alcoholic beverages.”

For December and the CPIH, the ONS added: “The largest upward contributions to the December 2021 CPIH 12-month inflation rate came from housing and household services (1.31 percentage points) and transport (1.29 percentage points, principally from motor fuels and second-hand cars).” (Statista)