UK Dec CPI rises to the highest rate since July 2014

The UK consumer prices prolong its northwards momentum in December, arriving at 1.6% versus November’s +1.2% and bettered estimates of a 1.4% rise, the Office for National Statistics (ONS) revealed on Tuesday.

While the core inflation gauge also outperformed in December, coming in at +1.6 y/y versus 1.4% last. Markets had predicted the core figures to show an increase of +1.5%.

On monthly basis, the UK inflation figures also showed an acceleration, rising +0.5% last month, as compared to +0.2 % previous and +0.3% expected.

ONS reports, “The main contributors to the increase in the rate were rises in air fares and the price of food, along with prices for motor fuels, which fell by less than they did a year ago.”