UK inflation unexpectedly rises to 4% in December

Inflation rises after two consecutive months of sharp falls

Valeria Martinez
clock • 3 min read
Prior to this morning’s data release, some economists had brought forward predictions for BoE rate cuts
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Prior to this morning’s data release, some economists had brought forward predictions for BoE rate cuts

The annual rate of UK inflation unexpectedly rose to 4% in December, tempering bets of an early interest rate cut by the Bank of England (BoE).

According to the Office for National Statistics, the uptick was in large part due to an increase in tobacco and alcohol prices, rising 12.9% in the year to December, while food and non-alcoholic be...

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