Cyprus Times

UK Inflation Rises to 3.4% in December, Exceeding Expectations

Published January 21, 2026, 08:10
UK Inflation Rises to 3.4% in December, Exceeding Expectations

Inflation in the United Kingdom rose to 3.4% in December, exceeding analysts' expectations of 3.3%. This increase reinforces doubts about the possibility of an interest rate cut by the Bank of England in February, despite previous expectations of monetary policy easing. Core inflation remained unchanged at 3.2%. New labor market data indicate a slowdown, further complicating the Bank of England's decision.