Fashion prices pushed up inflation in December

Daniel Fowler
January 21, 2021

Meanwhile, transport prices lifted as some travel restrictions eased earlier in December and air fares rose month-on-month despite the pandemic curbing most global travel. The CPI was up by 0.6% YoY, better than the 0.5% anticipated, while the core annual reading printed at 1.4%, also above the market's forecast.

"We are going to be talking a lot more about inflation in 2021 than we did 2020", said Jeremy Thomson-Cook, an economist at Equals Group.

Despite a fall in food and drink prices, the cost of transport, recreation and culture rose in the run-up to Christmas.

"Should the vaccine be successfully rolled out and restrictions reduced, it is likely inflation will pick up in the second half of the year, driven by consumers spending the money they have been unable to over the past year, and higher commodity prices".

Soaring demand for computer games and consoles and children's toys also pushed up inflation, the ONS said.

Prices rose in six of the eight major components on a year-over-year basis in December.

Travellers to England, Scotland will need negative Covid tests
Pilots are exempt from the requirement, which also applies to all global arrivals into the country by train or ship. In addition to the test, people flooding into England will also have to fill out a Passenger Locator Form .

"Inflation is likely to remain subdued in the short-term due to the effects of continued lockdown measures to stem the spread of Covid-19".

"Our analysis at regional level indicates that regions that entered higher tiers of restrictions in December experienced marked decreases in consumer prices during the month".

Statistics Canada said gasoline prices in December were down 8.5 per cent compared with a year earlier, but up 3.3 per cent compared with November as oil prices rose.

Prices at petrol pumps rose by 1.5 pence per litre last month.

According to the statement, inflation based on the food index of CPI-AL and CPI-RL is at (+) 2.97 per cent and (+) 2.96 per cent, respectively, in December 2020. Progress in immunisation will be as important for that as the path of inflation.

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