The annual rate of consumer price inflation in the UK increased to 4% in December, marking the first rise in 10 months. The figure exceeded expectations, as a Reuters poll of economists had anticipated a reading of 3.8%. The Bank of England, which raised interest rates to a 15-year high of 5.25% in August, had forecasted a return to the 2% inflation target by late 2025. However, due to factors like a decline in wholesale gas prices, some economists now believe this could occur as early as April or May this year. Core inflation, excluding certain volatile components, remained at 5.1% in December.
UK Consumer Price Inflation Rises to 4% in December, Surpassing Expectations
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