The UK's inflation rate unexpectedly rose to 3.4% in December, driven primarily by increased tobacco prices and higher airfares, according to official figures. This marks the first increase in five months, though analysts believe it's largely due to one-off factors.

• Inflation rose from 3.2% in November to 3.4% in December, exceeding the forecast of 3.3%.
• The Bank of England's rate-setting committee will meet on 5 February to decide on interest rates, which currently stand at 3.75%.
• Michael Saunders, a former rate-setter at the Bank, stated the rise is not a new upward trend, while Chancellor Rachel Reeves affirmed her priority is cutting the cost of living.
• Shadow Chancellor Mel Stride attributed the rise to the government's "economic mismanagement."
• Compared to European neighbors, UK inflation at 3.4% was higher than Germany's 2% and France's 0.7% in December.