In a surprising turn of events, UK inflation has accelerated for the first time since February of the previous year, according to official data released by the Office for National Statistics on Wednesday. Consumer prices in December rose by 4% compared to the same period a year ago, surpassing the November rate of 3.9%. Economists had anticipated a slowdown to 3.8%, underscoring the unexpected nature of the uptick.
The increase was primarily attributed to rises in tobacco prices, a consequence of recent duty hikes. However, this surge was mitigated by a decrease in food inflation, where prices continued to rise but at a notably slower pace compared to the previous year, stated Grant Fitzner, the chief economist at the Office for National Statistics.
Grant Fitzner emphasized, “The prices of goods leaving factories are little changed over the last few months, while the costs of raw materials remain lower than a year ago.” This observation reflects a certain stability in the manufacturing sector.
Core inflation, excluding volatile food and energy prices, remained stubbornly high at 5.1%, while services inflation experienced a slight uptick from 6.3% to 6.4%. The UK’s inflationary trend mirrors similar movements in the United States and Europe, where there have been marginal increases in headline inflation.
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