Inflation rises unexpectedly in December in first jump in 10 months

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Inflation rose unexpectedly in December in a blow to Rishi Sunak after the prime minister recommended the financial system had “turned a corner”.

Consumer Prices Index inflation rose to 4 per cent in December from 3.9 per cent in November, the Office for National Statistics (ONS) mentioned.

The Liberal Democrats mentioned the rise would fear folks throughout the nation “seeing their pay stretched as the cost of living crisis continues to rage on”.

Treasury spokesman Sarah Olney mentioned: “Let’s be clear, after years of mismanagement and mayhem, this Conservative Government should do much more to get our financial system again on monitor.”

But the chancellor insisted “the plan is working and we should stick to it”.

Jermy Hunt added: “As we have seen in the US, France and Germany, inflation does not fall in a straight line.

“We took difficult decisions to control borrowing and are now turning a corner, so we need to stay the course we have set out, including boosting growth with more competitive tax levels.”

ONS chief economist Grant Fitzner mentioned: “The rate of inflation ticked up a little in December, with rises in tobacco prices due to recently introduced duty increases.

“These were partially offset by falling food inflation, where prices still rose but at a much lower rate than this time last year.

“Meanwhile, the prices of goods leaving factories are little changed over the last few months while the costs of raw materials remain lower than a year ago.”

He added that the inflation determine would have stayed flat at 3.9 per cent with out the rises in tobacco costs.