Inflation in the UK has gone back up to 4 percent after an 'unexpected' rise in December. It is the first time that the rate has risen since February last year and has been fueled by rises in tobacco and alcohol prices, according to official figures.
The Office for National Statistics (ONS) revealed today (January 17) that the rate of Consumer Prices Index (CPI) inflation rose to 4 percent in December, up from 3.9 percent in November, despite most economists expecting the rate to edge lower to 3.8 percent.
With inflation still far from the government's target of 2 percent, it is said that the 'surprise' increase in CPI will deal a blow to hopes that the Bank of England could start cutting interest rates.
In December, the bank chose to keep the base rate at 5.25 percent for a third time after its last Monetary Policy Committee meeting (MPC). READ MORE: The ordinary £250k home in Greater Manchester that hides a swimming pool Try MEN Premium now for FREE...
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