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UK inflation slows in December

Staff Writer |
UK inflation slowed slightly largely on air fares in December, data from the Office for National Statistics showed Tuesday.

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Inflation eased to 3% in December from 3.1% in November. The rate came in line with expectations.

The 3.1% logged in November was the fastest since early 2012. The central bank targets 2% inflation.

Month-on-month, consumer prices advanced 0.4%, as expected, in December.

Core inflation that excludes energy, food, alcoholic beverages and tobacco, slowed to 2.5% in December from 2.7% in November. Inflation was forecast to slow to 2.6%.

Including owner occupiers' housing costs, inflation came in at 2.7% in December versus 2.8% in the previous month.

Another report from ONS showed that output price inflation accelerated to 3.3% in December from 3.1% in November.

Month-on-month, output prices climbed 0.4%, the same rate as seen in November.

Meanwhile, input price inflation eased sharply to 4.9% in December from 7.3% in November.

On a monthly basis, input prices edged up 0.1%, much slower than November's 1.6% increase. Prices have been rising since August.

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