UK inflation rate at its highest since July 2014

PanARMENIAN.Net - Rising air fares and food prices helped to push up UK inflation to its highest rate since July 2014 in December, BBC News reports.

Consumer Prices Index (CPI) inflation rose to 1.6% last month, up from 1.2% in November, the Office for National Statistics (ONS) said.

And higher costs for imported materials and fuels pushed up producer prices.

The fall in the pound since the Brexit vote was starting to feed into the economy, said the BBC's economics editor.

ONS head of inflation Mike Prestwood said: "This is the highest CPI has been for over two years, though the annual rate remains below the Bank of England's target and low by historical standards.

"Rising air fares and food prices, along with petrol prices falling less than last December, all helped to push up the rate of inflation.

"Rising raw material costs also continued to push up the prices of goods leaving factories."