The Office for National Statistics (ONS) will soon release the next Consumer Price inflation figures.
In order to analyse the figures, the ONS keeps track of a wide variety of everyday items in a 'basket'. The changing prices of each item help to inform what is known as the Consumer Price Index.
The Consumer Price Index is used as the main measurement for inflation in the UK and therefore its changes have a large direct effect on the economy. Because the CPI helps track price changes on common goods, such as milk and bread, families can use it to help organise their finances to accommodate any increases, especially during a cost of living crisis where every penny counts.
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Here's a breakdown of everything you need to know about the upcoming figures this month...
When will the new figures be released?
According to the ONS, the new consumer price inflation figures will be released on Wednesday, February 15 at 7am. It's important to note that these figures will account for inflation in January, not February, as they are always released roughly a month after the fact.
In November, CPI was at 10.7 per cent, while in December it dropped slightly to 10.5 per cent. This means there's a good chance it could drop again for January, although it's not yet clear by how much.
How will the change in inflation affect me?
Because the CPI is often used to measure overall inflation in the UK, it has a direct effect on many financial decisions. This can include uprates for pensions, wages, and benefits as well as influence housing costs.
If the CPI does increase this week, then it means that you may see things getting more expensive. However, the ONS highlights that CPI is not a 'cost of living' index because it tracks goods that many would not deem essential such as tobacco.
The ONS adds: "The index simply indicates what we would need to spend in order to purchase the same things we bought in an earlier period, irrespective of whether particular products are 'needed' or are 'good for you'."
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