Inflation Woes: UK Faces Higher Consumer Prices

Consumer prices in the UK rose unexpectedly in December, with annual inflation reaching 3.4%. Despite high inflation, services prices matched forecasts. The Bank of England predicts a decline in inflation rates soon. Tobacco and airfares contributed significantly to December's price increases.

In a surprising economic shift, consumer prices in the UK surged beyond forecasts in December, the Office for National Statistics reported on Wednesday.

Annual inflation climbed to 3.4% from November's 3.2%, with services inflation aligning with analysts' predictions at 4.5%.

The Bank of England remains optimistic, anticipating inflation nearing its 2% target by spring, as factors like utility costs normalize.

(With inputs from agencies.)