The Office for National Statistics (ONS) has released data on consumer price inflation for December 2024, noting that downward inflation contributions came from bread and cereals, while confectionery, jam and sugar all contributed to a rise inflation.
The Consumer Prices Index including owner occupiers’ housing costs (CPIH) rose by 3.5% in the 12 months to December 2024, unchanged from November. On a monthly basis, CPIH rose by 0.3% in December 2024, down from 0.4% in December 2023.
ONS said that the Consumer Prices Index (CPI) rose by 2.5% in the 12 months to December 2024, down from 2.6% in the 12 months to November. On a monthly basis, CPI rose by 0.3% in December 2024, down from 0.4% in December 2023.
ONS also found that the largest downward contribution to the monthly change in both CPIH and CPI annual rates came from restaurants and hotels.
Food inflation prices
Food and non-alcoholic beverage prices rose by 2.0% in the year to December, unchanged from November 2024. The annual rate of 2.0% was down from a recent high of 19.2% in March 2023, which was the highest annual rate for over 45 years.
According to ONS, prices for this division rose by 0.5% between November and December 2024, the same rate as a year ago. The annual rate of 2.0% in December 2024 compared with 8.0% in December 2023.
ONS highlighted that there were downward contributions to the change in the annual rate of inflation between November and December 2024 in two of the 11 food and non-alcoholic beverages classes. This was a result of prices being unchanged or rising at a lower rate between November and December than the rate of growth between the same two months last year. Some of these contributions came from bread and cereals.
Upward contributions to the change in the annual rate of inflation in November and December 2024 came from two of the 11 food and non-alcoholic beverages classes, coming from fruit, sugar, jam, honey, syrups, chocolate and confectionery.
“It’s critical that Government works with industry to mitigate the impact of new taxes and regulation to minimise price rises for consumers.”
Balwinder Dhoot, director of Industry Growth and Sustainability, The Food and Drink Federation (FDF), said: “Despite all the work manufacturers have done over the last couple of years to keep costs down for UK consumers, unfortunately food and drink price inflation persists.
“Unexpected increases to national insurance, rises in the minimum wage, and the introduction of multi-billion pound fees to businesses to pay for recycling reforms will add to the costs of food production. This is alongside record high prices for some global commodities, like cocoa, coffee and olive oil.
“It’s critical that Government works with industry to mitigate the impact of new taxes and regulation, to minimise price rises for consumers, and to help businesses continue to make the case for investment. We’d urge Government to sharpen its focus on accelerating growth by creating a more supportive business environment for UK manufacturers, with a particular focus on the quality and cost of regulation.”
