UK inflation rises for first time in five months as food costs rise

• UK inflation rose to 3.4 per cent in December, an increase from 3.2 per cent recorded in November 2025.
• The primary drivers for this increase included higher tobacco prices, following recently introduced excise duty increases, and increased airfares, likely due to the timing of return flights over the Christmas and New Year period.
• Rising food costs, particularly for bread and cereals, also contributed to the upward inflationary pressure.
• These increases were partially offset by a fall in rents inflation and lower prices for a range of recreational and cultural purchases.
• The annual increase in prices for goods leaving factories remained unchanged, while the cost of raw materials for businesses slowed, influenced by lower crude oil prices.