Higher tobacco prices and airfares have pushed the UK inflation rate to 3.4% in the year to December, according to official figures. The increase in average prices across the UK economy - the first in five months - was just above expectations, with many economists predicting only a slight uptick to 3.3%.

Inflation has been static or falling since last summer, and had fallen sharply in November following an easing of rising food costs.

Inflation bounces back in December as Christmas travel fuels price rises - The rate of Consumer Prices Index inflation rose to 3.4% in December from 3.2% in November, the Office for National Statistics said.

As Trump finishes the first year of his second term — having won the presidency on a pledge to " get the prices down " — the picture on inflation is more nuanced than he or his critics acknowledge. Year-over-year inflation is down from January 2025 — but only slightly, from 3.0% to 2.7%.

Inflation has risen for the first time in five months, hitting 3.4% in December, as transport, alongside alcohol and tobacco, pushed prices higher

Savers have been warned that their money might be “struggling to keep pace” with rising prices after interest rates fell last year.

Britain's main inflation measure sped up by more than expected to 3.4% in December from 3.2% in November, official figures showed on Wednesday. A Reuters poll of economists had shown a median forecast of a rise in consumer price inflation to 3.