{"id":79628,"date":"2025-01-15T07:34:21","date_gmt":"2025-01-15T07:34:21","guid":{"rendered":"https:\/\/www.taxresearch.org.uk\/Blog\/?p=79628"},"modified":"2025-01-15T07:34:40","modified_gmt":"2025-01-15T07:34:40","slug":"inflation-is-down-when-will-interest-rates-follow","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2025\/01\/15\/inflation-is-down-when-will-interest-rates-follow\/","title":{"rendered":"Inflation is down. When will interest rates follow?"},"content":{"rendered":"<p>As I, but apaprently no one else expected, inflation fell in December. The <a href=\"https:\/\/www.ons.gov.uk\/economy\/inflationandpriceindices\/bulletins\/consumerpriceinflation\/latest\" target=\"_blank\" rel=\"noopener\">Office for National Statistics has reported<\/a> the following this morning:<\/p>\n<ul>\n<li>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.<\/li>\n<li>On a monthly basis, CPI rose by 0.3% in December 2024, down from 0.4% in December 2023.<\/li>\n<li>The largest downward contribution to the monthly change in both CPIH and CPI annual rates came from restaurants and hotels; the largest upward contribution to both came from transport.<\/li>\n<li>Core CPI (excluding energy, food, alcohol, and tobacco) rose by 3.2% in the 12 months to December 2024, down from 3.5% in November; the CPI goods annual rate rose from 0.4% to 0.7%, while the CPI services annual rate fell from 5.0% to 4.4%.<\/li>\n<\/ul>\n<p>Given the reports of a very quiet Christmas for retailers, the hospitality sectors and other consumer-focussed businesses, how inflation could have moved otherwise was hard to imagine.<\/p>\n<p>The problem with most economists is that they do not walk about. As a result, what is going on in the real world passes them by.<\/p>\n<p>Now, when will the Bank of England cut interest rates, which is the move that the UK economy so desperately needs, and which this rate of inflation more than justifies?<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As I, but apaprently no one else expected, inflation fell in December. The Office for National Statistics has reported the following this morning: The Consumer<br \/><a class=\"moretag\" href=\"https:\/\/www.taxresearch.org.uk\/Blog\/2025\/01\/15\/inflation-is-down-when-will-interest-rates-follow\/\"><em> Read the full article&#8230;<\/em><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[190,35],"tags":[],"class_list":["post-79628","post","type-post","status-publish","format-standard","hentry","category-economic-data","category-economics"],"_links":{"self":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/79628","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/comments?post=79628"}],"version-history":[{"count":2,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/79628\/revisions"}],"predecessor-version":[{"id":79630,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/79628\/revisions\/79630"}],"wp:attachment":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/media?parent=79628"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/categories?post=79628"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/tags?post=79628"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}