United Kingdom inflation jumps in December

  • United Kingdom inflation jumps in December

United Kingdom inflation jumps in December

The UK's inflation rate jumped in December despite Covid curbs that forced non-essential shops to shut.

British inflation gathered speed in December as a temporary easing of COVID-19 travel restrictions helped to push up air and sea fares and a rise in global oil prices made fuel more expensive, official data showed on Wednesday.

Deputy National Statistician for Economic Statistics Jonathan Athow said: 'Clothing prices put upward pressure on inflation in December, despite some evidence of continued discounting.

The ONS said clothing prices rose "fractionally" in December, a month in which they usually tend to fall because of sales.

This was partially offset by a 0.07% downward contribution from falling food and non-alcoholic beverage prices.

Suring demand for computer games and consoles and children's toys pushed up inflation further, with annual recreation and culture inflation hitting its highest level since August.

The CPIH 12-month rate, which includes owner occupiers' housing costs, was 0.8% in December 2020, up from 0.6% in November.

Samuel Tombs, chief United Kingdom economist at Pantheon Macroeconomics, said he expects inflation to remain low until April, when a potential increase in the energy price cap could help push CPI up to 1.5%.

Allan Monks, UK economist at JPMorgan, predicted that prices will climb "sharply into the spring, led by rising energy inflation and the expiry of the current Value-Added Tax cut from April".

The headline CPI rate was up from 0.3 per cent in November - although it still remains far below the Bank of England's 2 per cent target.