UK Inflation Moderates In December

(RTTNews) - UK consumer price inflation moderated unexpectedly in December, the Office for National Statistics said on Wednesday.

The consumer price index registered an annual increase of 2.5 percent in December, weaker than the 2.6 percent rise in November. The rate was seen unchanged at 2.6 percent.

Month-on-month, the CPI climbed 0.3 percent, following a 0.1 percent rise in November. Prices were expected to gain 0.4 percent.

Excluding energy, food, alcohol, and tobacco, core inflation weakened to 3.2 percent in December from 3.5 percent in November. Core inflation was below economists' forecast of 3.4 percent.

Goods inflation rose to 0.7 percent from 0.4 percent, while services annual rate fell to 4.4 percent from 5.0 percent.

Another data from ONS showed that input prices fell for the fifth straight month in December. Input prices dropped 1.5 percent annually after a 2.1 percent drop.

Meanwhile, factory gate prices rose 0.1 percent after falling for three consecutive months. Prices were down 0.5 percent in November.

On a monthly basis, input prices edged up 0.1 percent compared to flat growth in November. Likewise, output prices gained 0.1 percent after November's 0.4 percent gain.