{"id":80293,"date":"2025-02-19T07:37:40","date_gmt":"2025-02-19T07:37:40","guid":{"rendered":"https:\/\/www.taxresearch.org.uk\/Blog\/?p=80293"},"modified":"2025-02-19T07:40:29","modified_gmt":"2025-02-19T07:40:29","slug":"infaltion-fell-in-january-anyone-suggestimng-otherwise-does-not-understand-the-statistics","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2025\/02\/19\/infaltion-fell-in-january-anyone-suggestimng-otherwise-does-not-understand-the-statistics\/","title":{"rendered":"Inflation fell in January. Anyone suggesting otherwise does not understand the statistics"},"content":{"rendered":"<p>The <a href=\"https:\/\/www.ons.gov.uk\/economy\/inflationandpriceindices\/bulletins\/consumerpriceinflation\/latest\" target=\"_blank\" rel=\"noopener\">Office for National Statistics<\/a> has reported this morning that:<\/p>\n<ul>\n<li>The Consumer Prices Index (CPI) rose by 3.0% in the 12 months to January 2025, up from 2.5% in the 12 months to December 2024.<\/li>\n<li>On a monthly basis, CPI fell by 0.1% in January 2025, compared with a 0.6% fall in January 2024.<\/li>\n<li>The largest upward contribution to the monthly change in the CPI annual rate came from transport, and food and non-alcoholic beverages; the largest downward contribution came from housing and household services.<\/li>\n<li>Core CPI (excluding energy, food, alcohol and tobacco) rose by 3.7% in the 12 months to January 2025, up from 3.2% in December 2024; the CPI goods annual rate rose from 0.7% to 1.0%, while the CPI services annual rate rose from 4.4% to 5.0%.<\/li>\n<\/ul>\n<p>Let me state the obvious: inflation fell by 0.1% in January. It just did not fall by as much as it did last year, so the annual index went up. But it fell on both occasions.<\/p>\n<p>In that case, there is no cause for panic.<\/p>\n<p>The Bank of England does not need to react by putting up interest rates.<\/p>\n<p>Mass hysteria amongst economic correspondents is not required.<\/p>\n<p>Politicians would be wise to shut jup.<\/p>\n<p>This is just how the index works.<\/p>\n<p>And now the rate will fall again.<\/p>\n<p>A 0.1% fall in inflation is just fine. Now, let's use a little maturity when appraising the way in which indices work and move on, because there is nothing of consequence to talk about here unless it is to say that inflation remains an issue of little consequence in the UK right now.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Office for National Statistics has reported this morning that: The Consumer Prices Index (CPI) rose by 3.0% in the 12 months to January 2025,<br \/><a class=\"moretag\" href=\"https:\/\/www.taxresearch.org.uk\/Blog\/2025\/02\/19\/infaltion-fell-in-january-anyone-suggestimng-otherwise-does-not-understand-the-statistics\/\"><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":[35],"tags":[],"class_list":["post-80293","post","type-post","status-publish","format-standard","hentry","category-economics"],"_links":{"self":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/80293","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=80293"}],"version-history":[{"count":2,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/80293\/revisions"}],"predecessor-version":[{"id":80295,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/80293\/revisions\/80295"}],"wp:attachment":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/media?parent=80293"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/categories?post=80293"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/tags?post=80293"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}