UK inflation December 2025
CNBC • • general
Key Points:
- The U.K. inflation rate rose to 3.4% in December, slightly above economists' forecasts of 3.3%, following a cooling to 3.2% in November.
- Core inflation remained steady at 3.2%, with increases driven by higher tobacco prices, airfares, and rising food costs, partly offset by lower rents and recreational expenses.
- The data has cast doubt on the Bank of England's expected interest rate cut in February, as inflation ticked up despite a cooling labor market and declining wage growth.
- Analysts suggest the BOE may hold off on rate cuts in the short term due to ongoing inflation risks, though future cuts could accelerate if wage growth continues to fall.
- Market strategists predict
