UK consumer price index (CPI) inflation figures for December will be released next Wednesday amid concern that price pressures are mounting again: November's figure amounted to 2.6 per cent, up from 2.3 per cent in October. The end of the year, meanwhile, saw a slight uptick in food prices, and some companies said they would put up prices in response to the increased costs outlined in last year's Budget.
Concrete signals as to the extent of the latest price increases are mixed: data published this week by the British Chambers of Commerce suggests pressures are increasing notably, while purchasing manufacturer indices were more equivocal. As it stands, inflation rising back towards the 3 per cent mark early this year looks a fair bet, albeit a move materially above that level isn't yet on the cards – and next week's release could even bring news of a small dip. For now, the Bank of England is still expected to cut rates again at its first meeting of the year on 6 February.