UK Inflation Edges Up to 4% in December on Tobacco Price Rises
• UK inflation rose to 4% in December, up from 3.9% in November, the first increase since February 2022 • Rise was partially due to increases in tobacco prices, while falling food inflation partially offset the increase • Core inflation remained at 5.1%, while services inflation rose from 6.3% to 6.4% • Increases mirror slight upticks in US and Europe, leading some economists to argue central banks unlikely to cut rates soon • Some economists argue inflation still losing momentum overall; risks include supply chain disruptions and rising energy prices