UK inflation rose unexpectedly to 4% in December due to tobacco and alcohol prices increasing, new figures show.
Inflation, which measures the rate at which prices rise, rose marginally from 3.9% in November, but economists had predicted it would fall further.
Tobacco and alcohol prices were up 12.9% in December compared to the month before, with the former rising due to recent tax hikes on the product.
Tobacco and alcohol prices were up 12.9% in December compared to the month before, with the former rising due to recent tax hikes on the product.
The Bank of England raised rates in a bid to tackle the pace of price rises in the UK, which has been putting the finances of households under pressure.
Financial markets and traders are now expecting it to cut its base rate in 2024 due to the inflation rate falling sharply since peaking at 11.1% in October 2022, which was the highest rate in 40 years.
The Bank’s rate, which determines the cost of borrowing money as well as returns on savings, currently stands at 5.25%, a 15-year high.
Chancellor Jeremy Hunt said while inflation had risen again, the government’s “plan is working and we should stick to it”.
“As we have seen in the US, France and Germany, inflation does not fall in a straight line,” he added.
UK inflation rose unexpectedly to 4% in December due to tobacco and alcohol prices increasing, new figures show.
Tobacco and alcohol prices were up 12.9% in December compared to the month before, with the former rising due to recent tax hikes on the product.
Inflation, which measures the rate at which prices rise, rose marginally from 3.9% in November, but economists had predicted it would fall further.
The Bank of England raised rates in a bid to tackle the pace of price rises in the UK, which has been putting the finances of households under pressure.
Tobacco and alcohol prices were up 12.9% in December compared to the month before, with the former rising due to recent tax hikes on the product.
Tobacco and alcohol prices were up 12.9% in December compared to the month before, with the former rising due to recent tax hikes on the product.
The Bank of England raised rates in a bid to tackle the pace of price rises in the UK, which has been putting the finances of households under pressure.
Financial markets and traders are now expecting it to cut its base rate in 2024 due to the inflation rate falling sharply since peaking at 11.1% in October 2022, which was the highest rate in 40 years.
The Bank’s rate, which determines the cost of borrowing money as well as returns on savings, currently stands at 5.25%, a 15-year high.
Chancellor Jeremy Hunt said while inflation had risen again, the government’s “plan is working and we should stick to it”.
“As we have seen in the US, France and Germany, inflation does not fall in a straight line,” he added.
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