The Consumer Price Index (CPI) jumped to 3.7% in December from 3.3% in November, at the same time the Retail Price Index (RPI) rose by a more modest 0.1% to 4.8%. CPI includes mortgage interest payments, RPI does not.
The rise is more than the Bank of England and most economists were expecting.
The Office for National Statistics (ONS) who produce the inflation figures attributed the rise to higher aviation and petrol prices. Increasing food prices also played a significant part in the rise, with food inflation showing the highest ever recorded rise for the month of December.
The rise in CPI will ...