Households will be cheering that inflation has more than halved over the past year, and is set to fall further in 2024.
But as the price of goods and services tumbles, analysts are now starting to worry about the risk of deflation.
Inflation rose by 4% in the 12 months to December. This was a surprise uptick from the 3.9% rate seen a month earlier.
Bar the latest data, inflation has generally been on a downward trajectory in recent months, and seems a world away from when inflation was in double digits a year ago. In October 2022, the consumer prices index (CPI) measure of inflation hit an eye-watering 11.1%.
