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Statistical article

Annual CPI inflation eases slightly in December 2024 after two monthly rises

Price indices, percentage changes and weights for measures of consumer price inflation, UK.

Release date: 15 January 2025
Next release: 19 February 2025
Version: Latest
Releases: View previous releases

Headline facts and figures

Consumer Prices Index incl owner occupiers’ housing costs

up 3.5%

in 12 months to December 2024

Consumer Prices Index

up 2.5%

in 12 months to December 2024

Owner-occupiers' housing costs

up 8.0%

in 12 months to December 2024

Important information:

This page is part of a limited preview of the ONS website and we welcome your feedback to help us improve it (opens in a new tab) . Most links have been removed for this preview.

Overview

  • The Consumer Prices Index including owner occupiers’ housing costs (CPIH) rose by 3.5% in the year to December 2024 (unchanged from November).
  • The Consumer Prices Index (CPI) rose by 2.5% in the year to December 2024 (down from 2.6% in November).

For CPIH, annual inflation has risen from 2.6% in September 2024 but remains below the peak of 9.6% in October 2022.

CPI annual inflation has risen from 1.7% in September 2024 but remains below the peak of 11.1% in October 2022.

Some of the most notable price movements behind the change in the annual CPIH inflation rate in December 2024 were:

  • restaurant and hotel prices rose by 3.4%, the lowest annual rate since July 2021
  • alcohol and tobacco prices rose by 5.3%, down from 6.8% in November
  • transport prices fell 0.6%, compared with 1.1% in November, with upward effects from motor fuels and second-hand cars

Statistical comment

“Inflation eased very slightly as hotel prices dipped this month but rose a year ago. The cost of tobacco was another downward driver, as prices increased by less than this time last year.

“This was partly offset by the cost of fuel and also second-hand cars, which saw their first annual growth since July 2023.”

Grant Fitzner, Chief Economist, Office for National Statistics

Warning:

This preview does not contain the latest consumer price inflation figures. View the latest consumer price inflation data on the main ONS website.

Annual CPI inflation rate falls while CPIH annual inflation rate is unchanged

CPIH, owner occupiers’ housing (OOH) costs component and CPI annual inflation rates, UK, December 2014 to December 2024

Download Figure 1 data

To understand the difference between our measures of consumer price inflation see the Definitions section.

Main inflation rate changes by division

Analysis of the inflation rate is grouped into 12 categories, or “divisions” using the Classification of Individual Consumption According to Purpose (COICOP).

We use our most comprehensive measure of inflation – the Consumer Prices Index including owner occupiers’ housing costs (CPIH) – to set out which divisions have made the largest contribution to the change in annual inflation.

Restaurants and hotels

The annual inflation rate for restaurants and hotels was 3.4% in December 2024. This is down from 4.0% in November and is the lowest annual rate since July 2021. On a monthly basis, prices fell by 0.1%, compared with a rise of 0.5% a year ago.

The easing in the annual rate mainly reflected a downward effect from hotels, where prices fell by 1.9% on the month, compared with a rise of 3.1% a year ago. Restaurants and cafes provided a smaller downward effect, where prices rose by 0.2% on the month. This is down from the 0.3% monthly rise a year ago.

Alcohol and tobacco

Prices in the alcohol and tobacco division fell by 0.2% between November and December 2024, compared with a rise of 1.2% a year ago. On an annual basis, prices rose by 5.3% in the year to December 2024 (down from 6.8% in the year to November).

The easing in the annual rate mainly reflected a downward effect from tobacco, where prices rose by 0.7% on the month, compared with a rise of 4.1% in December 2023. The rise in December 2023 was influenced by an increase in tobacco duty in November 2023.

The easing in the divisional rate was slightly offset by an upward effect from alcoholic beverages, which fell by 1.1% on the month, compared with a fall of 1.6% a year ago.

Transport

Overall prices in the transport division fell by 0.6% in the year to December 2024, compared with a fall of 1.1% in the year to November. On a monthly basis, prices rose by 1.0% in December 2024, up from 0.6% a year ago.

The change in the annual rate was mainly the result of upward effects from motor fuels and second-hand cars, partially offset by a downward effect from air fares.

The average price of petrol rose by 1.4 pence per litre between November and December 2024 to stand at 136.2 pence per litre, down from 142.8 pence per litre in December 2023.

Diesel prices rose by 2.0 pence per litre in December 2024 to stand at 142.5 pence per litre, down from 151.4 pence per litre in December 2023.

These movements resulted in overall motor fuel prices falling by 5.0% in the year to December 2024, up from a fall of 10.9% in the year to November.

Prices of second-hand cars fell by 0.6% between November and December 2024, compared with a fall of 2.8% a year ago. On an annual basis, prices rose by 1.0% in the year to December 2024, compared with a fall of 1.3% in the year to November. The annual rate was negative for 16 consecutive months before the rise in December 2024.

Air fares rose by 16.2% on the month in December 2024, down from 57.1% a year ago. It is normal for fares to rise into December. However, the rise in December 2024 was the lowest December rise since December 2019, and it is the third-lowest December rise since monthly price collection began in 2001. Part of the reason for the lower-than-usual growth may be because the return date for the European flights in this month's index was Christmas Eve and the return date for long-haul flights was New Year's Eve.

Housing and household services

The annual inflation rate for housing and household services was 6.0% in December 2024, up from 5.8% in November. This compares with a recent peak of 11.8% in January and February 2023. On a monthly basis, prices rose by 0.4% in December 2024, compared with a rise of 0.3% a year ago.

The 0.2 percentage point increase in the annual rate between November and December 2024 reflected upward effects from owner occupiers’ housing (OOH) costs and, to a lesser extent, liquid fuels. OOH costs rose by 8.0% in the year to December 2024, up from 7.8% in November. The latest figure is the highest since February 1992, when the rate was 8.6% in the constructed historical series.

Understanding how inflation affects you

To see how changes to inflation affect your household budget you can use our personal inflation calculator.

Our shopping prices comparison tool shows how the average prices of items have changed over time.

More detail on contributions to the different measures of inflation are available in the sections Changes in CPIH inflation and Changes in CPI inflation.

Changes in CPIH inflation

The annual CPIH inflation rate rose by 3.5% in the year to December 2024 (unchanged from November).

On a monthly basis, CPIH rose by 0.3% in December 2024, down from 0.4% in December 2023.

Main contributions by division

The unchanged annual CPIH rate into December 2024 reflected downward contributions from five divisions and upward contributions from four divisions.

The largest downward contributions came from:

  • restaurants and hotels
  • alcohol and tobacco
  • clothing and footwear

The largest upward contributions came from:

  • transport
  • housing and household services

Restaurants and hotels had the largest downward effect on annual CPIH inflation

Contributions to change in the annual CPIH inflation rate, UK, between November and December 2024

Download Figure 2 data

Footnotes

  1. Individual contributions may not sum to the total because of rounding.

The largest overall upward contributions to the annual CPIH inflation rate in December 2024 came from:

  • housing and household services
  • restaurants and hotels
  • recreation and culture

There were partially offsetting downward contributions from:

  • transport
  • furniture and household goods

Contribution to the annual CPIH rate from housing and household services largest since September 2023

Contributions to the annual CPIH inflation rate, UK, December 2022 to December 2024

Download Figure 3 data

Footnotes

  1. Individual contributions may not sum to the total because of rounding.

The contribution from the housing and household services division was the largest since September 2023.

Owner occupiers’ housing costs’ (OOH) contribution rose from 1.27 to 1.30 percentage points between November and December 2024. It was the main influence behind the increased contribution from housing and household services to the annual CPIH inflation rate in December 2024.

Contribution from owner occupiers’ housing costs rose for the 12th consecutive month

Contributions of housing components to the annual CPIH inflation rate, UK, January 2015 to December 2024

Download Figure 4 data

Footnotes

  1. Individual contributions may not sum to the total because of rounding.

Goods, services and core inflation

The CPIH all services index rose by 5.4% in the 12 months to December 2024, down from 5.7% in November. This is the lowest rate since January 2023. The largest downward contribution to the change in the annual rate came from transport (particularly passenger transport by air).

CPIH services annual inflation rate at lowest rate since January 2023

CPIH goods, services and core annual inflation rates, UK, December 2014 to December 2024

Download Figure 5 data

The CPIH all goods index rose by 0.7% in the 12 months to December 2024, up from 0.4% in the 12 months to November. There were upward contributions to the change in the annual rate from;

  • energy (particularly motor fuels)
  • non-energy industrial goods (particularly second-hand cars)
  • non-processed food (particularly fruit)

The core CPIH annual inflation rate was 4.2% in December 2024, down from 4.4% in November.

Changes in CPI inflation

The annual CPI inflation rate rose by 2.5% in the year to December 2024 (down from 2.6% in November).

On a monthly basis, CPI rose by 0.3% in December 2024, down from 0.4% in December 2023.

Main contributions by division

The fall in the rate into December 2024 reflected downward contributions from five divisions, partially offset by an upward contribution from four divisions.

The largest downward contributions came from:

  • restaurants and hotels
  • alcohol and tobacco
  • clothing and footwear

The largest upward contributions came from:

  • transport
  • miscellaneous goods and services

Restaurants and hotels had the largest downward effect on annual CPI inflation

Contributions to change in the annual CPI inflation rate, UK, between November and December 2024

Download Figure 6 data

Footnotes

  1. Individual contributions may not sum to the total because of rounding.

Although the sizes of the contributions differ from CPIH, the main drivers to the change are the same where they are common to both measures.

The CPIH includes extra housing components not included in the CPI. This can result in the largest contributions to the annual CPI and CPIH inflation rates coming from different divisions.

Positive contributions to annual CPI inflation from 10 divisions, led by restaurants and hotels, and recreation and culture

Contributions to the annual CPI inflation rate, UK, December 2022 to December 2024

Download Figure 7 data

Footnotes

  1. Individual contributions may not sum to the total because of rounding.

The largest-contributing division to CPI overall was restaurants and hotels (0.49 percentage point contribution to the CPI rate), whereas the largest-contributing division to CPIH was housing and household services in December 2024.

OOH had a large upward contribution to housing and household services in CPIH, but is excluded from CPI.

Goods, services and core inflation

Core CPI rose by 3.2% in the year to December 2024, down from 3.5% in December 2024.

CPI core annual inflation rate was last lower in September 2021

CPI goods, services and core annual inflation rates, UK, December 2014 to December 2024

Download Figure 8 data

The CPI all goods index rose by 0.7% in the year to December 2024, up from 0.4% in the year to November.

The CPI all services index rose by 4.4% in the year to December 2024, down from 5.0% in November. This is the lowest rate since March 2022.

As with the all-items annual inflation rates, the drivers of CPIH and CPI goods and services inflation are the same (except for owner occupiers’ housing costs (OOH) and Council Tax, which are excluded from CPI).

International comparisons

While the Consumer Prices Index including owner occupiers’ housing costs (CPIH) is our lead and most comprehensive measure of consumer price inflation, the Consumer Prices Index (CPI) is based on a harmonised methodology developed by Eurostat and allows for international comparisons to be drawn.

The UK’s CPI inflation rate of 2.5% was above the first (or “flash”) estimates of inflation for France (1.8%), but below that of Germany (2.8%) in the 12 months to December 2024.

UK inflation above estimate for France but below estimate for Germany

CPI compared with selected G7 and EU annual inflation rates, December 2014 to December 2024

Download Figure 9 data

Footnotes

  1. There are some differences in the definition of the US HICP that may limit comparison; more information is available on the US Bureau of Labor Statistics R-HICP homepage.
  2. December 2024 data for France and Germany are flash estimates and are not final; the final Harmonised Index of Consumer Prices (HICP) dataset, including the EU27 aggregate, for December 2024 is published on Friday, 17 January 2025. The latest Euro area inflation estimates can be found on the Eurostat website.
  3. The international data in this figure are sometimes revised.

Definitions

Consumer price inflation is the rate at which the prices of goods and services bought by households rise or fall, estimated using price indices.

ONS produces several measures of consumer price inflation, including the following.

Consumer Prices Index including owner occupiers’ housing costs (CPIH)

The most comprehensive measure of inflation. It includes owner occupiers’ housing costs (OOH), which are not included in CPI.

Consumer Prices Index (CPI)

Based on European regulations and produced to international standards, it is used in comparisons with other countries for the Harmonised Index of Consumer Prices. The government uses this measure in its inflation target.

Retail Prices Index (RPI)

An older measure of inflation which does not meet the standard of an accredited official statistic. We still publish RPI as it is widely used in contracts but do not encourage its use.

Data on consumer price inflation

  • Consumer price inflation tables

    Measures of monthly UK inflation data including the Consumer Prices Index including owner occupiers’' housing costs (CPIH), Consumer Prices Index (CPI) and Retail Prices Index (RPI). These tables complement the consumer price inflation time series dataset.

  • Consumer price inflation time series

    Comprehensive database of time series covering measures of inflation data for the UK including the CPIH, CPI and RPI.

  • Consumer price inflation detailed briefing note

    The consumer price inflation detailed briefing note has details of the items contributing to the changes in the CPIH, details of any notable movements, a summary of the reconciliation of CPIH and RPI, and the outlook, which looks ahead to next month's release.

Quality and methodology

To learn more about consumer price indices, including what they are used for and how they are calculated, read our Consumer price indices guide.

More quality and methodology information, including how the output is created and validated, is available in our Consumer Price Inflation QMI.

Our Consumer prices indices technical manual covers the concepts and methodologies underpinning the indices in more detail.

Accredited official statistics

These accredited official statistics were independently reviewed by the Office for Statistics Regulation in July 2017. They comply with the standards of trustworthiness, quality and value in the Code of Practice for Statistics and should be labelled “accredited official statistics”.

Cite this page

Office for National Statistics (ONS), released 15 January 2025, ONS website, statistical article, Consumer price inflation, UK: December 2024

Contact details

Name: Consumer Price Inflation team

Email: cpi@ons.gov.uk

Telephone: +44 1633 456900