UK inflation has increased unexpectedly and for the first time since February 2022

The rate of inflation has soared unexpectedly for the first time since February last year, according to the latest figures.

The Office for National Statistics (ONS) said the rate of Consumer Price Index (CPI) inflation rose to 4 per cent in December, an increase from 3.9 per cent in November. Most economists initially expected the rate to go lower to 3.8 per cent.

Rises in tobacco and alcohol prices seem to be the major driving force behind the figures. Prices for these products hit their highest peak of more than 31 years last month, at 12.8 per cent.

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Grant Fitzner, ONS chief economist, said: “The rate of inflation ticked up a little in December, with rises in tobacco prices due to recently-introduced duty increases. These were partially offset by falling food inflation, where prices still rose but at a much lower rate than this time last year.”

It comes after official data on Tuesday revealed a dip in wage growth, reaching its lowest rate for 20 months. Concerns have also been raised over the impact of the Red Shea shipping attacks on inflation which threatens to raise oil, gas, and goods prices as they're imported into the UK.

Chancellor Jeremy Hunt said: “As we have seen in the US, France and Germany, inflation does not fall in a straight line, but our plan is working and we should stick to it. We took difficult decisions to control borrowing and are now turning a corner, so we need to stay the course we have set out, including boosting growth with more competitive tax levels.”

While tobacco prices rose following a hike in tax in last November's autumn statement, households saw a reduction in food price rises. The ONS said prices also dropped at