Inflation hits 29-month high of 1.6% in December

Up from 1.2% in November

The UK inflation rate hit 1.6% in December 2016, the highest rate since the summer of 2014 and an increase from 1.2% the previous month.

The Office for National Statistics (ONS) said the 29-month high was driven by higher fuel and air fares, and food prices. A note also said transport prices created downward pressure during 2015 and early 2016, but have since become the largest upward pressure on prices. "[In] transport, prices, overall, rose by 2.9% between November and December 2016, compared with a rise of 1.8% a year ago," the ONS said.  "Within transport, the largest upward effect came from air fares, with prices rising by 49% between November and December 2016, compared with a smaller rise of 46% a year earlie...