The rate of Consumer Prices Index (CPI) inflation rose to four percent in December, the Office for National Statistics said.
On a monthly basis, CPI rose by 0.4 percent in December 2023, the same rate as in December 2022.
The largest upward contribution to the monthly change in annual rates came from alcohol and tobacco, while the largest downward contribution came from food and non-alcoholic beverages.
Grant Fitzner, chief economist at the Office for National Statistics (ONS), said: “The rate of inflation ticked up a little in December, with rises in tobacco prices due to recently introduced duty increases.
“These were partially offset by falling food inflation, where prices still rose but at a much lower rate than this time last year.
“Meanwhile, the prices of goods leaving factories are little changed over the last few months while the costs of raw materials remain lower than a year ago.”
Chancellor of the Exchequer Jeremy Hunt commented: “As we have seen in the US, France and Germany, inflation does not fall in a straight line, but our plan is working and we should stick to it.
“We took difficult decisions to control borrowing and are now turning a corner, so we need to stay the course we have set out, including boosting growth with more competitive tax levels.”
It comes after overall inflation dropped to 3.9 percent in November 2023, ourstripping the expectations of economists and forecasters in a boon for Chancellor Jeremy Hunt.
The figures – published in December – recorded the lowest inflation rate that Britain had seen in more than two years after Prime Minister Rishi Sunak pledged to slash the number.
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