January 20, 2023

  • The Consumer Prices Index including owner occupiers’ housing costs (CPIH) rose by 9.2% in the 12 months to December 2022, down from 9.3% in November.
  • The largest upward contributions to the annual CPIH inflation rate in December 2022 came from housing and household services (principally from electricity, gas, and other fuels), and food and non-alcoholic beverages.
  • On a monthly basis, CPIH rose by 0.4% in December 2022, compared with a rise of 0.5% in December 2021.
  • The Consumer Prices Index (CPI) rose by 10.5% in the 12 months to December 2022, down from 10.7% in November.
  • On a monthly basis, CPI rose by 0.4% in December 2022, compared with a rise of 0.5% in December 2021.
  • The largest downward contribution to the change in both the CPIH and CPI annual inflation rates between November and December 2022 came from transport (particularly motor fuels), clothing and footwear, and recreation and culture, with rising prices in restaurants and hotels, and food and non-alcoholic beverages making the largest partially offsetting upward contributions.

The Consumer Prices Index including owner occupiers’ housing costs (CPIH) rose by 9.2% in the 12 months to December 2022, down from 9.3% in November and 9.6% in October. Indicative modelled consumer price inflation estimates suggest that the October rate was the highest rate in over 40 years (the CPIH National Statistic series begins in January 2006). In the most recent month however, the CPIH annual rate was equal to the rate recorded just over 30 years earlier, between September and December 1990. The 0.1 percentage point fall in the annual rate between November and December 2022 came as a result of prices rising by less on the month than they did a year earlier: 0.4% in the month to December 2022, compared with 0.5% a year earlier.

The Consumer Prices Index (CPI) rose by 10.5% in the 12 months to December 2022, down from 10.7% in November and 11.1% in October. Indicative modelled consumer price inflation estimates suggest that the CPI rate would have last been higher than the October 2022 figure in 1981 (the CPI National Statistic series begins in January 1989). The slowing in the CPI rate between November and December came as a result of CPI prices rising 0.4% in the month to December 2022, compared with a larger rise of 0.5% a year earlier.

The main drivers of the annual inflation rate for CPIH and CPI are the same where they are common to both measures. However, the owner occupiers’ housing costs (OOH) component accounts for around 17% of the CPIH and is the main driver for differences between the CPIH and CPI inflation rates.

The easing in the annual inflation rate in December 2022 principally reflected price changes in the transport division, particularly for motor fuels. There were also downward effects from clothing and footwear, and recreation and culture. The largest, partially offsetting, upward effects came from restaurants and hotels, and food and non-alcoholic beverages.

Source: Office for National Statistics of the UK
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