United Kingdom: Inflation rises in December from the prior month
Latest reading: Consumer prices rose 3.4% on a year-on-year basis in December, following a 3.2% increase in the previous month. The reading was above market expectations and the Bank of England’s (BOE) 2.0% target.
Relative to the prior month’s figures, there were higher price pressures for transportation (+4.0% in annual terms vs +3.7% in November) and food and non-alcoholic beverages (+4.6% vs +4.2% in November). In contrast, price pressures reduced for recreation and culture in December (+2.7% vs +2.8% in November).
Meanwhile, core consumer prices were up 3.2% on a year-on-year basis in December, stable from the prior month’s reading. Services inflation—a key indicator of domestic price pressures monitored by the BOE—ticked up marginally to 4.5% from 4.4%.
Finally, consumer prices were up 0.43% in December on a month-on-month basis, following a 0.21% fall in the prior month.