The UK’s inflation rate has risen for the first time in five months.
The rise to 3.4% in the year to December was higher than expected, but experts believe it will be a one-off.
They said December’s data includes factors such as flight costs over Christmas and an increase in tobacco tax announced in the Budget.
Suzanne Caldwell, managing director of Cumbria Chamber of Commerce, said: “This latest data is a stark reminder that the UK inflation waters remain choppy. And indeed unclear.
“With CPI rising to 3.4% in December, the path to hitting the Bank of England’s 2% target will have further twists and turns.
“Hopes of another interest rate cut at the start of February now look very unlikely.
“The latest British Chambers of Commerce survey shows inflation remains a key concern for businesses cited by 56% of respondents.
“The threat of more US tariffs in the coming weeks will only increase the concerns of businesses, and consumers, around prices.
“Business confidence remains weak, and the Budget was a missed opportunity to turbocharge the economy.
“As businesses look ahead into an uncertain 2026 they need the Government to deliver on support for growth.
“That means action to boost investment, transform productivity and support trade.”
