UK Inflation rate jumps to 2.9%

UK inflation rose at its fastest annual pace for nine months in December.
The Office for National Statistics said the Consumer Price Index (CPI) measure of inflation had risen to 2.9%, up from an annual rate of 1.9% in November.
That was the biggest jump in the annual rate from one month to the next since records began, and exceeded the City's expectations of an increase to 2.6%.
The Retail Price Index (RPI), which includes housing costs, rose to 2.4%, its highest level since November 2008.
This was a rise from 0.3% in November, and also constitutes the biggest monthly rise in the annual rate of RPI inflation since 1979.

I think this will cause the Bank of England to raise interest rates, the days of low inflation are going to disappear....

Hardly surprising since the rate of VAT has just gone back up to 17.5% from the temporary 15%. If you want to encourage spending and cut inflation - cut taxes.

But the VAT rate rise should not be affecting December's figures (it only went back to 171/2% at the beginning of this month) - it will be interesting to see what the January figures are!!!