UK inflation rises again to 3.4% - Christmas flights, tobacco and bread drive increase

UK inflation bounced back in December as tobacco duty hikes and Christmas getaways helped push up the cost of living (Jordan Pettitt/PA) Jordan Pettitt

UK inflation rose to 3.4% in December, driven by higher tobacco prices and surging air fares during the Christmas travel period. The Consumer Prices Index climbed from November's 3.2%, marking a renewed uptick in the cost of living after months of easing pressure.

Tobacco duty hikes and seasonal air travel costs were the primary drivers behind the increase, according to the Office for National Statistics (ONS). Food prices also contributed, particularly for bread and cereals, though the overall rise came in below economists' forecast of 3.5%.

ONS chief economist Grant Fitzner said: «Inflation ticked up a little in December, driven partly by higher tobacco prices, following recently introduced excise duty increases. Air fares also contributed to the increase with prices rising more than a year ago, likely because of the timing of return flights over the Christmas and new year period. Rising food costs, particularly for bread and cereals, were also an upward driver. These were partially offset by a fall in rents inflation and lower prices for a range of recreational and cultural purchases.»

The December figures represent a reversal after inflation remained static or fell since last summer. November had seen a sharp decline due to easing food costs, making December's uptick notable for households facing renewed price pressures.

Note: This article was created with Artificial Intelligence (AI).