British consumer price inflation fell to a three-month low of 10.5% in December, offering some comfort to the Bank of England and households, but food and drink prices continued to accelerate, rising at the fastest pace since 1977
The drop in the headline rate of inflation from 10.7% in November was in line with economists' forecasts in a Reuters poll, and moves CPI further away from the 41-year high of 11.1% struck in October.
"Food costs continue to spike with prices also rising in shops, cafes and restaurants," ONS chief economist Grant Fitzner said.
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