The Latest Breaking News from Inflation

The rise was driven by increases in airfares, transport costs and tobacco prices, and means any further cut to interest rates is unlikely

The rate of Consumer Prices Index inflation rose to 3.4% in December from 3.2% in November, the Office for National Statistics said.

UK inflation rose to 3.4 per cent in December, an increase from 3.2 per cent recorded in November 2025. The primary drivers for this increase included higher tobacco prices, following recently introduced excise duty increases, and increased airfares, likely due to the timing of return flights over the Christmas and…

UK inflation bounced back in December as tobacco duty hikes and Christmas getaways pushed up the cost of living.

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Money has a way of turning into a silent, persistent pressure cooker. One day, you’re breezing through your twenties thinking, “I’ll deal with that later,” and the next, you’re staring at a spreadsheet and wondering why no one warned you about the little things that spiral into life-altering dilemmas.

A consensus of economists have predicted that it will jump higher to 3.5% for last month, from 3.2% in November.

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