British inflation increased in December. According to the Office for National Statistics, consumer prices rose 0.6% in annual terms after growth to 0.3% in November. A temporary easing of the restrictions on travel due to COVID-19 helped to raise the prices of air tickets and shipping whereas a rise in global oil prices made fuel more expensive and the price of clothes also increased. Prices at petrol pumps rose by 1.5 pence per litre. Clothing and footwear prices, which rose last month, in contrast with December 2019, also facilitated higher inflation.

Until the end of this year, the inflation will probably rise to close to the BoE’s 2% target. This is a positive signal for the British currency.

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