UK inflation edges higher to 3.4% in December, surpassing forecasts

ISTANBUL

The UK's Consumer Prices Index (CPI) rose to 3.4% in December 2025, up from 3.2% in November, the Office for National Statistics (ONS) announced on Wednesday.

The figure slightly surpassed market expectations of 3.3%.

The largest annual price increases last month were in education (7.6%), followed by alcohol and tobacco (5.2%), and housing (4.9%), according to the ONS.

Food inflation also gathered pace, climbing to 4.5% in December from 4.2% the previous month.

On a monthly basis, the CPI edged up 0.4% in December, compared to a 0.3% increase in November.

The primary drivers of monthly growth were transport (1.3%), furniture and household goods (1.2%), and food (0.8%).