UK Inflation Slows but Cost-of-Living Squeeze Continues Into 2023
• Food inflation hit 45-year high of 19.6% in March 2023, slowing but still 9% higher than a year ago • Energy bills rocketed over £4,000/year early 2023 before government cap kept average at £2,500 • Headline inflation dropped to 2-year low of 3.9% in November 2023 • Bank of England expects more inflation volatility before 2% target met • Forecasts show potential for interest rate cuts in 2024 as cost-of-living crisis transitions