Summary
Inflation in the UK increased to 3.4% in December, mainly due to higher prices for tobacco and airfares. This rise was slightly more than what many experts had predicted.
Key Facts
- UK inflation rose to 3.4% in December.
- Tobacco and airfares were the main reasons for this increase.
- Economists had expected an increase to only 3.3%.
- The rise in airfares was partly due to flights during the Christmas and New Year period.
- Tobacco prices increased because of a new tax introduced in November.
- The data were released before the Bank of England's upcoming decision on interest rates.
- Lower clothing and food prices helped keep inflation from rising even more.
