Market News
Surprise jump in UK inflation not expected to derail rate cuts - REUTERS
By Andy Bruce and William Schomberg
Summary
- UK CPI hits 3.4% in December from 3.2% in November
- Economists had expected reading of 3.3>#/li###
- Tobacco, air fares pushed up prices last month
- Markets show little reaction to data
- Economists stick with view that inflation pressure will abate
Jan 21 (Reuters) - British inflation rose by more than expected in December, pushed higher by air fares and tobacco prices, but the fastest rate of price growth among the world's big, rich economies is still likely to slow sharply in the coming months.
Investors held steady on their bets on the Bank of England cutting interest rates later this year with services price inflation, which is closely watched by the central bank, edging up in line with analysts' forecasts.
