DATE OF PUBLICATION: 2021-01-20 16: 18: 00 According to figures released by the National Statistical Office on Wednesday, consumer price inflation in the UK doubled in December due to rising costs of transport and recreation. Inflation accelerated to 0.6% from 0 , 3% in November, above the forecast of 0.5%. On a monthly basis, consumer prices rose 0.3%, regaining a 0.1% drop in November and exceeding the expected level of 0.2%. Excluding energy prices. , food, alcoholic beverages and tobacco products, core inflation rose to 1.4% from 1.1% in November. The forecast was 1.3%. Expenditures on transport, recreation and culture rose by 1.9% and 2.6%, respectively. Prices for food and non-alcoholic beverages fell 1.4%, while prices for clothing and footwear fell 1.8%. At the December meeting on monetary policy it was announced that in the spring inflation will rise quite sharply to the target, as the period The VAT cut is coming to an end, and the significant drop in energy prices in early 2020 falls outside the annual comparison. According to Thomas Pugh, an economist at Capital Economics, at the end of 2021 inflation is likely to rise to nearly 2.5%. However, the economic slowdown in 2022 will prevent inflation from surpassing the 2% target for long. According to another FDA report, selling prices fell for the 10th straight month in December, but the rate of decline was the lowest since March 2020. Selling prices fell 0.4% per year after falling 0.6% recorded a month earlier. On a monthly basis, selling price inflation remained stable at 0.3%. Selling prices were forecast to fall 0.6% y / y for December, but rise 0.2% m / m, while raw material price inflation was positive for the first time since August 2019. They were up 0.2% y / y, recovering from a 0.3% drop in November, but fell short of the + 1% forecast. On a monthly basis, commodity prices rose 0.8%, faster than the November pace growth of 0.4% and expected value of 0.7% Source – InstaForex