New figures released by the Office for National Statistics (ONS) show that the rate of inflation dipped for the second month in a row in December, suggesting the peak of the cost of living crisis has passed. The fall to 10.5 per cent last month from 10.7 per cent in November, indicates further steady easing back from the painful 41-year high of 11.1 per cent recorded in October.
Falling fuel costs were largely behind the slowdown in the pace of price rises, with the average petrol price down by 8.3 pence per litre month-on-month in December. However, there was little respite for families, with food and drink inflation soaring yet again, to 16.8 per cent in December up from 16.4 per cent in November, marking the highest level since September 1977.
But what does it all mean for your personal finances, mortgage, savings, pensions and general household spending over the next month? Alice Haine, Personal Finance Analyst at Bestinvest, the DIY investment platform and coaching service, explains what to expect.
