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UK inflation rises for first time in five months to 3.4% in December
Higher tobacco duties and a 28.6% rise in airfares during Christmas boosted UK inflation to 3.4%, the first increase in five months, Office for National Statistics said.
- ONS data published on Wednesday showed inflation rose to 3.4% in December from 3.2% in November, exceeding Reuters‑polled economists' forecasts of 3.3%.
- Rising costs for energy and food were driven by post‑Covid demand and the Russian invasion of Ukraine, while tobacco duties and seasonal return flights over Christmas and New Year also pushed prices up.
- Breaking down the CPI shows core inflation held at 3.2% while services inflation edged up to 4.5% and food inflation rose from 4.2% to 4.5%, driven by bread and cereals.
- Households face immediate effects as the data casts doubt on the expected February rate cut and markets now anticipate the Bank of England Monetary Policy Committee will keep the base rate at 3.75%, squeezing mortgage holders and households.
- Forecasters predict Bank of England economists, Deutsche Bank Research and Capital Economics expect inflation to fall toward target by spring, with most economists foreseeing reductions in the coming months.
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UK Inflation Rises to 3.4 Percent in December
The UK inflation rate edged higher at the end of 2025, driven by higher tobacco taxes and a surge in holiday travel costs, according to official data released on Jan. 21. Consumer price index (CPI) inflation rose to 3.4 percent in the 12 months to December 2025, up from 3.2 percent in November, the Office for National Statistics said. The increase marked a renewed uptick after inflation had cooled for much of the autumn, following a summer peak.…
·New York, United States
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UK inflation ticks up to 3.4% in December as food, transport costs rise
UK inflation climbed more than expected in December, driven by higher air fares and tobacco prices, but markets remain confident the Bank of England will cut interest rates later this year as underlying price pressures ease
·Mumbai, India
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Total News Sources69
Leaning Left10Leaning Right6Center16Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 31%
C 50%
R 19%
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