UK inflation rises to 3.4% in December, first increase in five months
UK CPI climbs to 3.4% in December, up from 3.2% in November, driven by higher tobacco taxes, airfares and food costs.
In December 2025 the Office for National Statistics reported UK consumer price inflation at 3.4%, up from 3.2% in November and the first rise in five months since July. The increase was attributed to higher tobacco prices from tax hikes, costlier airfares, and rising food costs—especially bread and cereal—driving food inflation to 4.5% during the Christmas shopping period. Services inflation ticked to 4.5% from 4.4% in November. Economists expect inflation to fall toward the Bank of England’s 2% target by April or summer, potentially enabling interest‑rate cuts.
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