UK CPI firms in Dec while producer price pressures ease

UK consumer inflation has edged higher in December 2025, with the Consumer Prices Index (CPI) rising 3.4 per cent year on year (YoY), up from 3.2 per cent in November. On a monthly basis, CPI increased 0.4 per cent, compared with 0.3 per cent in December 2024, according to the Office of National Statistics (ONS).

Clothing and footwear prices showed signs of stabilisation after a prolonged period of deflation. Inflation in the category improved to 0 per cent YoY in December from –0.6 per cent in November, with prices rising 0.1 per cent MoM.

Core CPI, excluding energy, food, alcohol and tobacco, was unchanged at 3.2 per cent, although services inflation edged higher to 4.5 per cent, an ONS release said.

Producer price pressures, however, continued to ease. Producer input prices rose 0.8 per cent in the year to December 2025, down from 1.1 per cent in November. Monthly input prices fell 0.2 per cent. The sharpest downward contribution came from crude oil, where prices dropped 15.1 per cent over the year. The Import Price Index rose 1.3 per cent year on year but declined 0.4 per cent on the month.

Producer output, or factory gate, prices increased 3.4 per cent YoY in December, unchanged from November, and showed no monthly movement. Within manufacturing, output prices for textiles, wearing apparel and leather products rose 4.9 per cent YoY in December, up slightly from 4.8 per cent in November, with a 0.1 per cent MoM increase.

ALCHEMPro News Desk (HU)