21 Jan 2026 | 5 Mins Read

UK inflation exceeds predictions at 3.4% in December

Flipitmoney

U.K. inflation rate rose to 3.4% in December, above forecasts of 3.3%. Core inflation stood at 3.2%. Higher tobacco prices, airfares, and food costs contributed to the increase, offset by falling rents inflation and lower recreational and cultural purchase prices. The pound was flat against the dollar at $1.3231, raising doubts about the Bank of England's expected February rate cut.