The UK's inflation rate surged to 0.6% in December from 0.3% in November despite high street closures.
A last minute demand for Christmas gifts and travel were the main factors behind the rise, the Office for National Statistics (ONS) said.
Although fewer people were travelling during the Christmas period, increased demand for transport pushed up prices for travellers after Boris Johnson introduced a last minute Christmas ban.
Demand for computer games and consoles and children's toys also pushed up inflation, with annual recreation and culture inflation hitting its highest level since August.
Jonathan Athow, deputy national statistician at the ONS, said: "Clothing prices put upward pressure on inflation in December, despite some evidence of continued discounting.
"Transport costs, including air, sea and coach fares, as well as petrol prices, rose as some travel restrictions eased during parts of the month."
These rises were partially offset by falling food prices, most notably for vegetables and meat.
Laith Khalaf, financial analyst, AJ Bell, said: "The price of cooked ham and cauliflowers fell, and while that combination may not make for the most appetising of meals, there was a reduction in food prices more broadly, which is good news for monthly budgets. Perhaps the more worrying trend was the 1.5p rise in petrol prices over the month, as the oil price has continued to climb, and can be expected to move further upwards if there is an economic recovery this year.
"While inflation looks well contained, there is increasing concern it could start to be a problem once social restrictions are lifted, as a wave of pent up consumer demand is unleashed.
"If inflation does take hold, the Bank of England has plenty of ammunition to throw at the problem by raising interest rates from historic lows. The issue is the Bank won’t want to tighten policy until the economy is able to withstand it.
"However, economic forecasting is a hit and miss business at the best of times and given the extraordinary circumstances we find ourselves in, predictions need to be treated with an extra dose of caution."
