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UK Inflation Soars: Airfares, Cigarettes Drive Prices Up
21 Jan
Summary
- Airfare costs surged 11.0% year-on-year in December, a significant jump.
- Tobacco duty increases led to higher prices for cigarettes and cigars.
- Grocery inflation eased, with butter and tea prices seeing a slowdown.
The UK's inflation rate experienced a notable acceleration in December, primarily driven by sharp rises in airfares and tobacco products. Consumer Prices Index data revealed that average airfares increased by 11.0% compared to the previous year, a significant jump from November's 0.3% rise. This surge is attributed to increased demand during the Christmas holiday season.
Further contributing to the upward pressure were increased prices for cigarettes and cigars, up 6.9% and 4.2% respectively year-on-year. These hikes are a direct consequence of a tobacco duty increase implemented in late November. Live entertainment, including cinema and concert tickets, also saw a notable price rise of 3.7% annually.
Conversely, some everyday food items offered a reprieve, with inflation easing for butter, tea, and other groceries. For example, the annual inflation rate for butter decreased from 12.1% to 8.9%. Prices also fell faster for items like heaters and air conditioners, and washing machines.
