UK inflation dips but remains close to 40-year high

UK inflation has fallen for a second month in a row but remains close to a 40-year high.

Inflation, which measures the rate of price rises, fell to 10.5% in the year to December, compared to 10.7% in November, official figures show.

The drop was due to fuel prices falling along with clothing and footwear prices, however, this was offset by rising costs in restaurants and hotels.

The cost of food also continued to rise last month in shops and cafes.

Inflation is the increase in the price of something over time and to calculate it, the Office for National Statistics (ONS) keeps track of the prices of hundreds of everyday items.

Lower inflation does not mean the prices of goods are going down, it just means prices are rising more slowly.

Some analysts believe that the cost of living may now slowly be beginning to ease.