There are very few economist surprised to see a jump in the UK Inflation rate but the amount of it  over a single month took markets and forecasters by surprise. The Office of National Statistics (ONS) announced an inflation rate of 1.6% for December, up almost a half of percent from 1.2% in November, year on year, this figure being the highest for two years. The outlook? probably more of the same but maybe by smaller increments to take it the other side of 2% in the next quarter.

Air fares and food pricing are the main culprits for this rise, with the lower pound carrying the can for some of this, imported foodstuffs costing more, some of which has been passed on to the consumer by the supermarkets, some has been absorbed.