London Daily

Focus on the big picture.
Friday, Feb 20, 2026

Inflation eases to 10.7% but the cost of a night out surges ahead of Christmas

Inflation eases to 10.7% but the cost of a night out surges ahead of Christmas

The ONS says the cost of a Christmas party has risen at its fastest rate since 1991, but charts a decline in the overall pace of inflation, led by motor fuels.

The rate of inflation eased to 10.7% from 11.1% last month, according to official figures showing that food and the cost of a night out continue to rise in price ahead of Christmas.

The Office for National Statistics (ONS) said falling motor fuel prices led the decline in the core consumer prices index (CPI) measure of inflation.

It reflected falling oil costs and a meaningful recovery in the value of the pound versus the dollar on which oil costs are pegged.

Overall, fuel prices rose by 17.2% in the year to November - down from 22.2% in the year to October, the ONS said.

It reported that the largest upwards contribution to the inflation number last month came from rising prices in restaurants, hotels, cafes and pubs - led by alcoholic drinks.

The ONS added that the annual rate of inflation in this particular sector of hospitality was running at its highest level since 1991, at 10.2%.

The overall CPI rate came in lower than economists had expected.

Many suggested we may now be past the peak, which was running at a 41-year high in October.

The cost of living crisis, however, shows little sign of easing up in any substantial way given that household energy bills are running at record levels, despite government support, amid the first cold snap of the 2022/23 winter.

The ONS said energy and food costs remained the main drivers of inflation, with food running at an annual rate of 16.4%.


Food inflation was running at 16.4% last month ahead of the core Christmas season

The Bank of England is widely expected by economists to add to the bills of borrowers on Thursday by raising Bank rate again as part of its battle against inflation.

A hike of at least 0.5 percentage points is forecast by the bulk of experts as policymakers across the West continue to bear down on the price threats posed to their economies from Russia's war in Ukraine.

The invasion in February exacerbated the rising tide of price rises caused by economies reopening after COVID disruption, as many commodities, including food staples, widely produced in both countries soared in cost.

The cost of manufacturing goods has added to the bills substantially too because of Russia's historic role in supplying oil and gas - now reduced to a trickle in comparison amid sanctions regimes.

The Bank of England can do nothing to bear down on these prices, but it can act to take demand out of the economy - helping prices fall back - through Bank rate increases.

It believes that the country is already in the grip of a recession, defined by two consecutive quarters of negative growth.

A contraction in the third quarter of the year - July to September - is expected to be followed by a further dip in the current October to December quarter.

Chancellor Jeremy Hunt responded to the ONS price figures by declaring inflation as "the number one enemy".

He said: "The aftershocks of COVID-19 and (Vladimir) Putin's weaponisation of gas mean high inflation is plaguing economies across Europe and I know families and businesses are struggling here in the UK.

"Getting inflation down so people's wages go further is my top priority, which is why we are holding down energy bills this winter through our energy price guarantee scheme and implementing a plan to help halve inflation next year.

"I know it is tough for many right now but it is vital that we take the tough decisions needed to tackle inflation - the number one enemy that makes everyone poorer.

"If we make the wrong choices now, high prices will persist and prolong the pain for millions."

Newsletter

Related Articles

0:00
0:00
Close
UK Confirms Preferential U.S. Trading Terms Will Continue After Supreme Court Tariff Ruling
U.S. and U.K. to Hold Talks on Diego Garcia as Iran Objects to Potential Military Use
UK Officials Weigh Possible Changes to Prince Andrew’s Position in Line of Succession Amid Ongoing Scrutiny
British Police Probe Epstein’s UK Airport Links and Expand High-Profile Inquiries
Early 2026 Data Suggests Tentative Recovery for UK Businesses and Households
UK Introduces Digital-First Passport Rules for Dual Citizens in Border Control Overhaul
Unable to Access Live Financial Data for January UK Surplus Report
UK ‘Working Closely with US’ to Assess Impact of Supreme Court Tariff Ruling
Trump Criticises UK Decision to Restrict Use of Bases in Potential Iran Strike Scenario
UK Foreign Secretary and U.S. State Chief Hold Strategic Talks as Tensions Rise Over Joint Air Base
Nordic Fracture: How Criminal Scandals and Toxic Ties are Dismantling the Norwegian Crown
US Supreme Court Voids Trump’s Emergency Tariff Plan, Reshaping Trade Power and Fiscal Risk
King Charles III Opens London Fashion Week as Royal Family Faces Fresh Scrutiny
Trump’s Evolving Stance on UK Chagos Islands Deal Draws Renewed Scrutiny
House Democrat Says Former UK Ambassador Unable to Testify in Congressional Epstein Inquiry
No Record of Prince Andrew Arrest in UK as Claims Circulate Online
UK Has Not Granted US Approval to Launch Iran Strikes from RAF Bases, Government Confirms
AI Pricing Pressure Mounts as Chinese Models Undercut US Rivals and Margin Risks Grow
Global Counsel, Advisory Firm Co-Founded by Lord Mandelson, Enters Administration After Client Exodus
London High Court dispute over Ricardo Salinas’s $400mn Elektra share-backed bitcoin loan
UK Intensifies Efforts to Secure Saudi Investment in Next-Generation Fighter Jet Programme
Former Student Files Civil Claim Against UK Authorities After Rape Charges Against Peers Are Dropped
Archer Aviation Chooses Bristol for New UK Engineering Hub to Drive Electric Air Taxi Expansion
UK Sees Surge in Medical Device Testing as Government Pushes Global Competitiveness
UK Competition Watchdog Flags Concerns Over Proposed Getty Images–Shutterstock Merger
Trump Reasserts Opposition to UK Chagos Islands Proposal, Urges Stronger Strategic Alignment
Greek Prime Minister Kyriakos Mitsotakis advocates for a ban on minors using social media.
Liberal Senator Michaelia Cash Accuses Prime Minister of Lying to Australians
Meanwhile in Time Square, NYC One of the most famous landmarks
Jensen Huang just told the story of how Elon Musk became NVIDIA’s very first customer for their powerful AI supercomputer
A Lunar New Year event in Taiwan briefly came to a halt after a temple official standing beside President Lai Ching‑te suddenly vomited, splashing Lai’s clothing
Jillian Michaels reveals Bill Gates’ $55 million investment in mRNA vaccines turned into over $1 billion.
Ex-Prince Andrew Mountbatten-Windsor's arrested
Former British Prince Andrew Arrested on Suspicion of Misconduct in Public Office
Four Chagos Islanders Establish Permanent Settlement on Atoll
Unitree Robotics founder Wang Xingxing showcases future robot deployment during Spring Festival Gala.
UK Inflation Slows Sharply in January, Strengthening Case for Bank of England Rate Cut
Hide the truth, fake the facts, pretend the opposite, Britain is as usual
France President Macron says Free Speech is Bull Sh!t
Viktor Orbán getting massive praise for keeping Hungary safe, rich and migrant-free!
UK Inflation Falls to Ten-Month Low, Markets Anticipate Interest Rate Cut
UK House Prices Climb 2.4% in December as Market Shows Signs of Stabilisation
BAE Systems Predicts Sustained Expansion as Defence Orders Reach Record High
Pro-Palestine Activists Cleared of Burglary Charges Over Break-In at UK Israeli Arms Facility
Former Reform UK Councillors Form New Local Group Amid Party Fragmentation
Reform UK Pledges to Retain Britain’s Budget Watchdog as It Seeks Broader Economic Credibility
Miliband Defends UK-California Clean Energy Pact After Sharp Criticism by Trump
University of Kentucky to Host 2026 Summer Camps Fair Connecting Families with Local Programmes
UK Police Forces Assess Claims Jeffrey Epstein Used Stansted Airport Flights in Trafficking Network
UK-Focused Equity ETF FLGB Climbs to Fresh 52-Week Peak on Strong Market Sentiment
×