UK inflation soars at fastest pace for nine months

Consumer prices rose 0.6% last month, taking the annual rate up to 2.9% from 1.9% in November, the biggest monthly rise in the annual index since records began in 1997. The jump significantly exceeded the City's expectations for an increase to 2.6%. Retail Price Index (RPI) inflation also rose, up to 2.4%, its highest level since November 2008. Azad Zangana, European economist at Schroders, cites energy price falls at the end of 2008 and the VAT cut from 17.5% to 15% in December 2008 as key reasons for the pick-up. But he adds: "Worryingly, core inflation, which excludes volatil...