UK inflation rose at its fastest annual pace for nine months in December.

The Office for National Statistics said Consumer Price Index (CPI) inflation rose 0.6% last month, taking the annual rate up to 2.9% from 1.9% in November.

That was the biggest monthly rise in the annual index since records began and exceeded the City's expectations for an increase to 2.6%.

The Retail Price Index (RPI), which includes housing costs, rose to 2.4%, its highest level since November 2008.

This was a rise from 0.3% in November, and also constitutes the biggest monthly rise in the annual rate of RPI inflation since 1979.

"Disappointed but not surprised. That's the appropriate reaction to the eye-popping 2.9% annual CPI inflation rate for December"
Stephanie Flanders, BBC economics editor

The annual increase in CPI mainly came about because of a number of unusual factors that had depressed prices a year earlier. These included a near-record fall in oil prices in December 2008, the VAT cut to 15% and retail discounting, the Office for National Statistics said.
BBC News - Inflation rate jumps to 2.9%