LONDON, Jan 17 (AFP): British inflation unexpectedly accelerated in December on tobacco duty hikes, data showed Wednesday, missing expectations of a slowdown and dimming hopes of an interest rate cut.
The Consumer Prices Index climbed to four per cent last month, the first increase since February 2023, the Office for National Statistics said in a statement.
That is double the Bank of England's official target of two per cent, and dashed market expectations for a slowdown to 3.8 per cent.
The news also stoked worries over Britain's cost-of-living crisis, after the rate touched a two-year low of 3.9 per cent in November.
"The rate of inflation ticked up a little in December, with rises in tobacco prices due to recently introduced duty increases," said ONS chief economist Grant Fitzner.
UK inflation in shock rise to 4.0pc in December
FE Team | Published: January 17, 2024 22:12:25
UK inflation in shock rise to 4.0pc in December
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