Food Inflation Stays Flat at 4%

Inflation Holds Steady at 4% Amid Forecasts of a Slight Increase

The Office for National Statistics (ONS) reported that England’s consumer price index (CPI) in January capped inflation at 4%—exactly where it landed last year, despite economists expecting a modest climb to 4.1% or even 4.2%.

Key Drivers Behind the Numbers

Second‑hand car prices – a rise that nudged the overall inflation curve upward.
Energy price cap increases – also added bite to the inflationary pressure.
Daily food and drink cost growth slowed enough to counterbalance the energy surge.
However, a handful of grocery items—think pasta, fruit, and veggies—continue to experience a steady rise.

Food Inflation: A Story of 0.4% Decline

From December to January, food costs slipped 0.4%. The sector’s inflation rate sits at 8%, a far cry from the 19.2% seen in March last year, which was the sharpest jump in 45 years.

Policy Response

Chancellor Jeremy Hunt noted, “Inflation never falls in a perfect straight line, but the plan is working; we have made huge progress in bringing inflation down from 11%, and the Bank of England forecasts it will slide to around 2% in a matter of months.”