UK inflation unexpectedly ticks up in December

(Sharecast News) - UK inflation unexpectedly edged higher in the year to December, according to figures released on Wednesday by the Office for National Statistics, driven by a rise in alcohol and tobacco prices. The consumer price index rose to 4% from 3.9% in November, versus expectations for a drop to 3.8%. This marked the first jump in inflation since February 2023.

ONS chief economist Grant Fitzner said: "The rate of inflation ticked up a little in December, with rises in tobacco prices due to recently introduced duty increases.

"These were partially offset by falling food inflation, where prices still rose but at a much lower rate than this time last year.

"Meanwhile, the prices of goods leaving factories are little changed over the last few months, while the costs of raw materials remains lower than a year ago."