The Office for National Statistics (ONS) has announced today that the Consumer Prices Index (CPI) inflation rate in the United Kingdom rose to 3.4 per cent in the 12 months to December. This marks an increase from the 3.2 per cent rate recorded in November, signalling a notable shift in economic trends.
First Rise in CPI and CPIH Since July 2025
According to the ONS, this uptick represents the first time that both the CPI and the CPIH (Consumer Price Index with Housing costs) have risen since July 2025. This development suggests a potential change in inflationary pressures within the UK economy, which could have broader implications for monetary policy and consumer spending.
Context and Implications
The rise in inflation comes at a time when global economic discussions are intensifying, as highlighted by Chancellor Rachel Reeves's recent speech at the World Economic Forum meeting in Davos. Her address yesterday focused on various economic challenges and opportunities, which may intersect with domestic inflation trends. While the ONS has provided this initial data, further analysis and updates are expected to follow as more information becomes available.
This increase in the inflation rate could impact households across the UK, affecting everything from grocery bills to energy costs. Economists and policymakers will likely monitor these figures closely to assess whether this is a temporary blip or the start of a more sustained inflationary period.
