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UK inflation rises for first time in five months - but one-off factors blamed

UK inflation increased to 3.4% in December for the first time in five months, primarily due to higher airfares and tobacco prices. Analysts suggest that this rise is attributable to one-off factors and do not expect a sustained upward trend, anticipating that the Bank of England may consider interest rate cuts in the near future.

A young woman walks in an airport with her carry-on luggage. She is carrying her phone and wearing baggy beige trousers and a black top

A young woman walks in an airport with her carry-on luggage. She is carrying her phone and wearing baggy beige trousers and a black top

Credit: Co

Key Highlights

  • UK inflation rose to 3.4% in December, up from 3.2% in November.
  • The increase was driven by higher prices for airfares and tobacco.
  • Economists do not expect a continued rise in inflation due to one-off factors.
  • The Bank of England is expected to consider interest rate cuts later this year.
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Sources

  1. UK inflation rises for first time in five months - but one-off factors blamed
  2. UK inflation ticks up to 3.4% in December as food, transport costs rise

This quick summary is automatically generated using AI based on reports from multiple news sources. The content has not been reviewed or verified by humans. For complete details, accuracy, and context, please refer to the original published articles.

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