Inflation slowed in December to undershoot market expectations, official figures showed on Wednesday.
According to the Office for National Statistics, the consumer price index rose by 2.5% last month, against 2.6% in November.
This was also below market expectations for another 2.6% uptick, with inflation on a monthly basis at 0.3%, against expectations for 0.4%.
Core inflation, excluding volatile energy and food costs, slowed from 3.5% to 3.2% and was also below expectations for a 3.4% rise.
“Inflation eased very slightly as hotel prices dipped this month, but rose a year ago,” ONS chief economist Grant Fitzner commented.
“The cost of tobacco was another downward driver, as prices increased by less than this time last year.
“This was partly offset by the cost of fuel and also second-hand cars, which saw their first annual growth since July 2023.”