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UK Inflation Climbs To 3.4 Percent As Prices Rise. UK inflation rises to 3.4 percent in the year to December, driven by higher tobacco prices and airfares, according to official figures from the Office for National Statistics. The increase, the first in five months, comes in slightly above expectations. The ONS says airfares rise partly because of the timing of return flights over the Christmas and New Year period, alongside a tobacco duty increase introduced in late November. Rising food prices, particularly for bread and cereals, also push inflation higher, according to ONS chief economist Grant Fitzner. These pressures are partly offset by slower rent increases and lower prices for some recreational and cultural goods. The figures come just weeks before the Bank of England decides on interest rates. Chancellor Rachel Reeves says her priority is cutting the cost of living, pointing to measures such as frozen rail fares and prescription charges. Shadow chancellor Mel Stride blames the rise on economic mismanagement, warning inflation is leaving working people worse off.
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