UK inflation rises for first time in five months to 3.4% in December

Bigger than forecast rise probably temporary but analysts rule out Bank of England interest rate cut in February

Inflation in the UK rose for the first time in five months to 3.4% in December, pushed up by higher air fares and tobacco prices.

The Office for National Statistics (ONS) said the annual inflation rate increased from 3.2% in November after falling in October and flatlining in the previous three months. The figure overshot City economists's forecasts of a modest rise to 3.3%.