17.01.201704:57:00UTC+00U.K. Inflation Highest Since Mid 2014

U.K. inflation reached its highest level since July 2014, the Office for National Statistics reported Tuesday.

Consumer price inflation increased more-than-expected to 1.6 percent in December from 1.2 percent in November. This was the highest rate since July 2014 and above the expected rate of 1.4 percent.

Month-on-month, consumer prices advanced 0.5 percent versus 0.2 percent in the prior month. Prices were forecast to grow 0.3 percent.

Core inflation excluding energy, food, alcoholic beverages and tobacco, climbed to 1.6 percent from 1.4 percent a month ago.

The ONS data showed that output price inflation accelerated to 2.7 percent in December from 2.4 percent in November but slower than the forecast of 2.9 percent.

Month-on-month, output prices edged up 0.1 percent each in December and November. Economists had forecast a 0.4 percent rise.

At the same time, input prices again logged a double-digit growth in December, by 15.8 percent after rising 13.3 percent in November. Economists forecast 15.5 percent increase.

On a monthly basis, input prices gained 1.8 percent, reversing a 0.6 percent drop in November. Prices were expected to climb 2.4 percent.