Inflation highest for over a year

Inflation is at its highest for over a year, according to the Office for National Statistics. Under the Retail Prices Index (RPI), inflation was up by 2.4% in December — its highest figure since November 2008. The rise came as the cuts in interest rates started to fall out of the official calculations.

Under the Consumer Prices Index (CPI), inflation rose to 2.9% in December from 1.9% the previous month.