Business · 21 January 2026
UK Inflation Rises in December, Driven by One-Off Factors
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UK inflation rose to 3.4% in December, the first increase in five months, driven by higher airfares and tobacco prices, according to official figures. Economists believe these are temporary factors and not indicative of a longer upward trend. The rise precedes the Bank of England's meeting on February 5th to decide on interest rates, after it trimmed borrowing costs to 3.75% at the end of 2025. Chancellor Rachel Reeves cited measures in the Budget to cut the cost of living.
Reported by BBC · How we write briefs