(Alliance News) - UK inflation soared to a near 30-year high in December, data showed on Wednesday, with all eyes now on the Bank of England's meeting at the start of next month.
The consumer price index rose 5.4% year-on-year in December, accelerating from 5.1% in November. This topped market forecasts of 5.2%.
"This is the highest CPI 12-month inflation rate in the National Statistic data series, which began in January 1997, and it was last higher in the historical modelled data series in March 1992, when it stood at 7.1%," the Office for National Statistics said.
Pushing up the index were prices for second hand cars, jumping 29% after a rise of 27% in November, while food price inflation accelerated to 4.5% from November's 2.4%. Growth in prices of clothing & footwear ticked up to 4.2% from 3.5%.
Encouragingly, while prices of fuels & lubricants grew a heady 27% in December, this was slowed from 29% in November, and electricity price growth was steady at 19%.
"We're bringing forward our forecast for the next increase in [the UK] Bank Rate to February, from March, following December's consumer prices figures," said Samuel Tombs, chief UK economist at Pantheon Macroeconomics.
By Lucy Heming; lucyheming@alliancenews.com
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