UK inflation beats expectations with 0.2% rise in December

Up from 0.1% in November

For the first time in a year, UK inflation has exceeded 0.1%, rising to 0.2% in December, according to the Office for National Statistics (ONS).

The rate remained positive last month, with the Consumer Prices Index (CPI) measure rising to 0.2%, from November's 0.1%. This is the highest rate recorded since January 2015 and above economists' expectations. The ONS said transport costs, mainly air fares and petrol, were the main contributors to the rise, but this was partially offset by falls in alcohol, tobacco and food costs. Meanwhile, the Retail Prices Index, which includes housing costs, rose by 1.2%, up from 1.1% in November. Monthly inflation has been between -0.1% and 0.1% for the past 11 months, as low oil and commo...