LONDON, Jan. 21 (Xinhua) -- Britain's consumer price index (CPI) rose by 3.4 percent year on year in December 2025, accelerating from 3.2 percent in November, data from the Office for National Statistics (ONS) showed Wednesday.
On a monthly basis, CPI rose by 0.4 percent in December, compared with a 0.3 percent increase in December 2024.
Inflation ticked up a little in December, driven partly by higher tobacco prices. Airfares contributed to the increase with prices rising more than a year ago, likely because of the timing of return flights over the Christmas and New Year period, said Grant Fitzner, chief economist at the ONS.
Rising food costs, particularly for bread and cereals, were also an upward driver, he added, noting that the inflation was partially offset by a fall in rents inflation and lower prices for a range of recreational and cultural purchases.
"Headline inflation took an unwelcome rise at the end of year, primarily driven by increases in food inflation and transport costs," said Harvir Dhillon, economist at the British Retail Consortium, "with food inflation climbing to 4.5 percent and wage growth slowing, households are still feeling the squeeze."
Stuart Morrison, research manager at the British Chambers of Commerce (BCC), commented Wednesday's data is a "stark reminder that the UK inflation waters remain choppy."
BCC's latest survey shows inflation remains a key concern for businesses, cited by 56 percent of respondents, he said, adding that the threat of more U.S. tariffs in the coming weeks will only increase price concerns among firms.
"Headline inflation has been slow to fall from its summer peak and remains higher than at the start of the year," Dhillon said, explaining this reflects the high costs currently buffeting retail businesses, including National Insurance, labor costs and packaging taxes, all of which have pushed up costs. ■
