Inflation eases although remains high: ONS
The price of food items such as sugar, low-fat milk and olive oil increased by over 40% in the year to January 2023, according to the latest figures from the Office of National Statistics.
While there was a drop in overall UK price inflation to 10.1% for the month from 10.5% in December, food costs remain at significantly high levels.
Sugar prices rose by 40%, while olive oil rose by 44% and low-fat milk by 45% from January 2022 to January 2023.
Other staple grocery items such as eggs rose by 28% while butter rose by 27%.
Food inflation is once again high, at 16.7% in the year to January, a minor drop from 16.8% in December, while alcohol and tobacco increased to 5.1% in the year to January, up from 3.7% in December.
ONS Chief Economist Grant Fitzner said although it remained at a high level, inflation eased again in January.
“This was driven by the price of air and coach travel dropping back after last month’s steep rise. Petrol prices continue to fall and there was a dip in restaurant, café, and takeaway prices,” he said.
“The cost of furniture decreased by more than this time last year, in line with traditional New Year discounting.
“These were offset by rising prices for alcohol and tobacco, following on from seasonal price cuts in December and a more subdued rise at the same time last year.”
He added that business prices “remain high overall”.
“There are further indications that costs facing businesses are rising more slowly, driven by crude oil, electricity and petroleum prices. However, business prices remain high overall, particularly for steel and food products.”