UK inflation goes up

UK inflation was higher than expected in December as the weaker pound left its mark. The CPI was up 1.6% year-on-year at the end of last year, compared with a forecast of 1.4% and 1.2% in November.Month-on-month the CPI was up 0.5% against a forecast rise of 0.3% and 0.2% previously.

Consumer Prices Index (CPI) inflation rose to 1.6% last month, up from 1.2% in November, the Office for National Statistics (ONS) said. And higher costs for imported materials and fuels pushed up producer prices. The fall in the pound since the Brexit vote was starting to feed into the economy, said the BBC's economics editor, Kamal Ahmed.

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