UK inflation edges higher in December on rising transport costs

12-month CPI inflation rate rises to 0.6%

Rising transport and clothing costs helped to drive the UK's 12-month CPI inflation rate 0.6% higher in December, up from 0.3% in the previous month, according to data from the Office for National Statistics.

The CPIH 12-month rate, which includes owner occupiers' housing costs, was 0.8% in December 2020, up from 0.6% in November. As owner occupiers' housing costs account for around 16% of the CPIH, it is the main driver for differences between the CPIH and CPI inflation rates. Transport costs contributed 0.11 percentage points to the rate over December, while increasing prices for clothing, and recreation and culture contributed 0.10 percentage points each respectively. This was partially offset by a 0.07% downward contribution from falling food and non-alcoholic beverage prices. Sm...