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UK Inflation Soars on Flights & Fags
21 Jan
Summary
- Air fares rose 11% year-on-year in December.
- Tobacco prices increased due to duty hike.
- Grocery prices like butter and tea decelerated.
The UK's inflation rate experienced a notable increase in December, with significant price hikes in air travel and tobacco products contributing to the rise, according to the Office for National Statistics (ONS).
Despite a slowdown in price increases for items such as butter and tea, consumers faced steeper costs for other goods and services. Average air fares saw a substantial year-on-year increase of 11.0% in December, contrasting sharply with a 0.3% rise in November, largely due to holiday travel demand.
Smokers also experienced higher prices, with cigarette costs climbing 6.9% year-on-year in December, an acceleration from the previous month, following a tobacco duty increase. Cultural entertainment tickets also became more expensive, rising 3.7% year-on-year.
Other categories contributing to faster inflation included women's clothing, appliances like fridges and freezers, and various food items. However, downward pressure came from reduced inflation for fats, butter, and cocoa products, and faster price falls for heaters, coffee machines, and washing machines.
