UK inflation just hit an 11-month high -- but it's still only at 0.2%

UK inflation came in at 0.2% for December, according to official figures released on Tuesday.

The Office for National Statistics says the consumer price index — the key measure of inflation — increased by 0.2% in December, compared to the same figure last year. That was bang in line with economists’ forecasts.

The consumer price index rose by 0.1% compared to November, against estimates of a 0.1% rise. Both the year-on-year and month-on-month figures were an acceleration. Year-on-year inflation was just 0.1% in November and flat on the prior month.

The year-on-year figure, the most watched measure, represents an 11-month high. Inflation has been between -0.1% and 0.1% for the last 10 months due to a collapse in oil prices and a supermarket price war that has led to slashed prices.

Despite the acceleration, inflation remains well below the Bank of England’s 2% target.

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