economy

January 21, 2026

UK inflation rises to 3.4% in December, above forecasts

The U.K. inflation rate rose to 3.4% in December, above forecasts of 3.3% from economists polled by Reuters.

UK inflation rises to 3.4% in December, above forecasts

TL;DR

  • UK inflation rose to 3.4% in December, up from 3.2% in November.
  • Increases were driven by higher tobacco and airfare prices, and rising food costs.
  • Core inflation remained unchanged at 3.2% in December.
  • The rise in inflation may cast doubt on the Bank of England's expected February interest rate cut.
  • Chancellor Rachel Reeves expects inflation to cool towards the 2% target later in the year.
  • Analysts suggest the Bank of England may hold interest rates longer due to mixed economic signals.

Continue reading the original article

Made withNostr