The U.K. inflation rate rose to 3.4% in December, above forecasts of 3.3% from economists polled by Reuters.
The inflation rate had cooled sharply to 3.2% in the twelve months of November, with the data encouraging the Bank of England to cut interest rates at its final meeting of the year last month.
Core inflation, excluding energy, food, alcohol, and tobacco, stood at 3.2% in December, unchanged from November, according to the latest figures from the Office for National Statistics.
“Inflation ticked up a little in December, driven partly by higher tobacco prices, following recently-introduced excise duty increases,” the ONS’ Chief Economist Grant Fitzner commented on X Wednesday.
“Airfares also contributed to the increase with prices rising more than a year ago, likely because of the timing of return flights over the Christmas and New Year period. Rising food costs, particularly for bread and cereals, were also an upward driver,” he added.
