U.K. Inflation Rate Falls to 2.5%

According to the ONS, the Consumer Prices Index (CPI) rose by 2.5% in the 12 months to December 2024, down from 2.6% in the 12 months to November.

Kate Nicholls, Chief Executive of UKHospitality, said: “While it’s positive there has been a slight dip in inflation, there has not been enough movement to calm the fears among hospitality businesses that we’re entering a troubling period for the economy.

“This will only get worse as we head towards April, when £3.4 billion of costs will be levelled on the hospitality sector.

“These damaging costs are forcing businesses to slash investment, cut jobs and raise prices – none of which will drive economic growth or help reduce inflation.

“We desperately need to grow away from stagflation, and that starts with rethinking the planned changes to employer National Insurance Contributions.

“A pause will mitigate the negative impacts on businesses, team members and the economy that these changes will bring, and it will give the sector some breathing space to work back towards investment and growth.”