2020.01.1509:16:00UTC+00UK Inflation At 3-Year Low

UK consumer price inflation eased to a three-year low in December, the Office for National Statistics reported Wednesday.

Inflation slowed to 1.3 percent in December from 1.5 percent in November. The rate was forecast to remain steady at 1.5 percent.

On a monthly basis, consumer prices remained flat after rising 0.2 percent a month ago. Prices were expected to rise again by 0.2 percent.

"Inflation eased in December as prices for hotel stays dropped. Women's clothing prices also fell with more items being discounted," ONS Head of Inflation Mike Hardie said.

Another report from ONS showed that output price inflation accelerated to 0.9 percent in December from 0.5 percent in November. This was the first time the rate has picked up since July 2019.

Month-on-month, output prices remained flat, following three straight months of negative change.

At the same time, input prices decreased for the fifth consecutive month. Input prices fell 0.1 percent annually, slower than the 1.9 percent decline in November.

On a monthly basis, input price inflation fell to 0.1 percent from 0.5 percent in November.

In a separate communique, the ONS reported that average house prices increased 2.2 percent over the year to November, up from 1.3 percent in October.