Christmas travel fuels increase in UK inflation

UK inflation bounced back in December as tobacco duty hikes and Christmas getaways helped to push up the cost of living, official figures show.

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The rate of Consumer Prices Index (CPI) inflation rose to 3.4% in December from 3.2% in November, the Office for National Statistics (ONS) said.

It marks the first time in five months that the headline rate has risen. Inflation has been static or falling since last summer, and had fallen sharply in November following an easing of rising food costs.

However, December's CPI rate comes in slightly below the 3.5% that a consensus of economists had been forecasting for the month.