Britons have been warned to brace for interest rates staying high for now after a surprise increase to the inflation rate in the latest figures.
Inflation increased to four percent for the year to December 2023, with the market impacted by increases to duty charges on tobacco.
Independent economist Julian Jessop said: “UK inflation unexpectedly ticked up to four percent in December, with the ‘core’ rate stuck at 5.1 percent, which will dampen hopes of early rate cuts.
“But still much lower than the Bank of England had been forecasting: the November Monetary Policy Report assumed that inflation would average 4.6 percent in 2023 Q4, 4.4 percent in 2024 Q1, and not return to the MPC’s two percent target until 2025 Q4.”
