15 Jan 2025UK inflation dipped in December for the first time in three months, according to the latest data from the Office for National Statistics (ONS). Prices rose 2.5% in the year to December, down from 2.6% the month before, ONS said. Despite the drop, the rate of price rises remains above the target of the Bank of England, which will make its next interest rates decision next month. The ONS, said while hotel prices and tobacco prices had fallen last month, the decreases were offset by the cost of fuel and second-hand cars rising. Stuart Morrison, Research Manager at the British Chambers of Commerce, said: 'Today's slight dip in the inflation rate is welcome but it's not a game-changer. Underlying price pressures within the economy are clear following the Budget. The path ahead on interest rates this year is likely to remain slow and cautious. 'We need quick government action to ease the cost pressures companies are facing and create new opportunities for investment. Ministers should focus on accelerating business rates reform, giving infrastructure projects the green light and boosting exports.'