UK CPI inflation rate rises to 3.7% in December
UK inflation jumped in December with the Consumer Prices Index (CPI) rising to 3.7%, up from 3.3% in November.
Retail Prices Index (RPI) inflation - which includes mortgage interest payments - rose to 4.8% from 4.7%.
The rise will put further pressure on the Bank of England to lift interest rates to curb rising inflation.
The recent VAT rise from 17.5% to 20% could further fuel inflation, which has now remained above the 2% target by one percentage point or more for 13 months.
Prices rose 1% between November and December, a record change between those two months.
Hugh Pym reports.
18 Jan 2011