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UK inflation rate drops back to 3% | |
(35 minutes later) | |
The UK's inflation rate has fallen for the first time since June, mainly due to the impact of air fares. | |
The inflation rate dipped to 3% in December, down from November's rate of 3.1% - a six-year high. | |
The Office for National Statistics (ONS) said that while air fares rose last month, it had a smaller impact than at the same point in 2016. | |
The ONS added it was too early to say if this was the start of a longer-term reduction in the rate of inflation. | |
The Bank of England has said it thinks inflation peaked at the end of 2017 and will fall back to its target of 2% this year. | |
In November, the Bank's Monetary Policy Committee (MPC) raised its key interest rate for the first time in more than a decade from 0.25% to 0.5%. | |
But Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said: "The continued weakness of underlying price pressures means that the MPC has little need to rush the next rate hike." |