UK inflation rate nudges to 4% in Dec.

U.K. inflation unexpectedly climbed upwards four per cent year-on-year in December from 3.9 per cent in November, driven by a rise in alcohol and tobacco prices, according to Office for National Statistics data showed on Wednesday.

The Consumer Prices Index (CPI) including owner occupiers’ housing costs (CPIH) rose by 4.2 per cent in the 12 months to December 2023, the same rate as in November and down from a recent peak of 9.6 per cent in October 2022, the data revealed.

The data showed that the CPI goods annual rate slowed from 2.0 per cent to 1.9 per cent, while the CPI services annual rate increased from 6.3 per cent to 6.4 per cent.