The UK inflation rate rose to 3.4% in December, marking its first increase in five months, according to the latest official figures. The 3.4% figure came in slightly above expectations, with most economists forecasting only a marginal increase. However, analysts widely agree that this uptick is unlikely to signal a sustained upward trend. Inflation stood at 3.2% in November, making December’s reading modestly higher than the anticipated 3.3%. Notable timing as it comes ahead of the Bank of England’s (BoE) first interest rate decision of the year, scheduled for 5 February. The BoE ended 2025 by reducing its base rate to 3.75%. Compared with European counterparts, UK inflation remains higher. Germany recorded an inflation rate of 2% in December, while France stood at just 0.7%.