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UK inflation dips slightly to 10.5% but people continue to feel pinch

Annual rate falls in December, although it remains at one of highest levels in 40 years

  • Baker Warburtons battles soaring food inflation

UK inflation fell back slightly in December to 10.5% but remains at one of the highest levels in 40 years as the cost of living crisis continues.

The Office for National Statistics (ONS) said the annual rate as measured by the consumer prices index (CPI) dipped again last month, continuing a fall from 10.7% in November and its recent peak of 11.1% in October. City economists had forecast a modest fall to 10.5%.

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