December's unexpected decline in the inflation rate to 2.5% is a positive sign for Chancellor Rachel Reeves, suggesting a potential interest rate cut next month.
The CPI reading of 2.5% indicates inflation is moving in the right direction, easing fears among the Bank of England's monetary policy committee.
Core inflation decreased to 3.2%, down from 3.5% the previous month, indicating declining domestic price increases, which are a primary concern for policymakers.
Downward pressure was notably influenced by transport prices, which dropped by 0.6%, and the Office for National Statistics identified hotels and restaurants as key drivers of the CPI decrease.
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