UK inflation ticks up to 3.4% in December on tobacco and travel costs

Britain’s inflation rate rose to 3.4% in December from 3.2% in November, beating economists’ 3.3% forecast, with higher tobacco prices from new excise duties and pricier airfares contributing, along with rising bread and cereal costs; core inflation held at 3.2%, while rents and some recreational prices fell. The pound traded near $1.323, and the data cloud the Bank of England’s path to a February rate cut as pay growth remains soft.